DMPQ- What is peer to peer landing? What are the advantages associated with it?

P2P lending is the popular type of crowd funding, whereby an internet platform collects small amounts of funds from individuals in a crowd to finance collectively a larger loan to individuals or businesses. Websites that facilitate peer-to-peer lending have greatly increased its adoption as an alternative method of financing.P2P lending is also known as social lending and has only existed since 2005.

The advantages associated with it are as follows:

  1. Accessibility to the credit increased.
  2. NO need of getting into formal channel. More paperwork and time taking process.
  3. Large amount can be obtained via this channel.
  4. No mandatory collateral
  5. P2P also offer extra flexibility over banks.
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