Is peer-to-peer lending legal?

Because, unlike depositors in banks, peer-to-peer lenders can choose themselves whether to lend their money to safer borrowers with lower interest rates or to riskier borrowers with higher returns, in the US peer-to-peer lending is treated legally as investment and the repayment in case of borrower defaulting is not …

Are peer to peer loans any good?

Peer-to-peer loans should be as safe for borrowers as pretty much any other kind of loan. In fact, it’s the lenders who actually take on the real risk with peer-to-peer lending. Individuals (also known as investors) who deposit money meant to be loaned out to borrowers do not have their money FDIC-insured.

Can you make money with peer-to-peer lending?

Peer to peer lending is one of the most simple and effective ways I’ve ever found to make passive income. It has outperformed my stock picks, selling old baseball cards, my own business ideas – everything. I’ve earned more money through it than I’ve earned at anything else except my day job.

Is peer-to-peer lending risky?

Peer-to-peer investments are in loans made to individuals, and that means that they carry the risk of default. That risk is even greater because the loans are generally unsecured, so there is no collateral to go after in the event of default.

Is peer lending safe?

Is peer-to-peer lending safe? Peer-to-peer lending platforms are not traditional banks or online lenders, which might make you nervous about borrowing from them. That said, investors take on the most risk; if borrowers don’t repay their loans and they go into default, investors probably won’t get their money back.

How does FinancePeer earn money?

In FinancePeer, a customer depositing money will make more money (from 11 to 37% annually) and when a borrower borrows the money, he gets it at a lower interest rate. This has been made possible the company owing to its advanced technology and operational efficiency.