Peer-to-peer lending, commonly known as P2P lending, refers to lending money to businesses or individuals using online media that link lenders and borrowers. The primary goal of P2P lending is to increase lenders’ profits while decreasing borrowers’ interest rates. In addition, because P2P lending is online, it also helps to deliver rapid and straightforward loans.
The number of new participants in the peer-to-peer (P2P) lending sector has increased dramatically in recent years. For example, according to Business Today, Faircent, a P2P lending service, has already disbursed 1145 crore loans in FY2021 alone, representing an almost 24 percent rise in disbursals. According to financial analysts, the surge in P2P lending is due to the excellent yields of 14-16 percent p.a. compared to other asset classes.
This article will cover a list of the top 9 online P2P lending apps and networks today:
1. Upstart
Upstart, founded in 2012, is a well-known peer-to-peer lending platform software that has already funded millions of dollars in P2P loans and is still growing. To thoroughly verify all debtors, Upstart employs a simple scoring algorithm. However, the majority of borrowers on the site are younger and have minimal credit and employment histories. Upstart is one of the most reliable peer-to-peer lending platforms that offer high-quality lending services to its clients.
Upstart needs a minimum investment of $100 and charges an annual fee of 0.5 percent. It also gives investors the ability to diversify their holdings. Investors must be accredited, which means they must earn at least $200,000 per year.
2. Commonbond
CommonBond is a significant financial technology firm located in New York that provides consumers and businesses with a range of student loan-related solutions. More inexpensive, open, and straightforward solutions to pay off student debt help consumers. To expand their companies with Millennials and Gen Z, firms benefit from tech-forward acquisition and engagement skills.
Financing loans isn’t easy; there are several levels of operational overhead, procedures, and approval processes to deal with on the backend. In addition, these procedures must balance speed and efficiency with rigor and transparency due to stringent laws and compliance requirements.
3. Pagaya
Pagaya Investments was established in 2016, is a financial technology firm redefining the asset management industry by managing institutional money with machine learning and big data analytics. Pagaya provides discretionary funds to institutional investors such as insurance companies, pension funds, and banks, focusing on a fixed income and alternative credit.
Pagaya’s proprietary technology platform, Pagaya Pulse, uses a combination of artificial intelligence and cutting-edge algorithms to provide a continuously high and scalable performance advantage.
4. Sofi
Sofi began as a peer-to-peer lender for student loan refinancing in 2011 but has now expanded to include personal loans and home loans.
This renowned website provides borrowers and investors attractive rates, with typical APRs ranging from 5.99 percent to 20.89 percent. Variable-rate loans have a maximum APR of 14.95 percent. The typical loan period ranges from 24 to 84 months.
Personal loans have a maximum value of $100,000, but they are only available to borrowers who fulfill tight qualifying standards (high or exceptional credit scores). As a result, there is a minimal probability of defaulting on a loan with high-quality borrowers.
5. Zest AI
Douglas Merrill invented Zest AI in 2009. Zest AI provides credit underwriting services that use big data analytics to assist lenders in making more accurate loan decisions. As a result, zest helps lenders make better assessments and loans, boosting income, lowering risk, and automating compliance.
Zest software enables banks and credit unions to uncover good borrowers typically ignored by standard credit scoring procedures by going beyond the statistical and data restrictions of traditional credit scores. On average, banks, credit unions, and enterprises that use Zest-built models have experienced a 20% improvement in approval rates with no additional risk.
6. Amount
Amount is a financial technology firm that was formed from disruption and is designed for speed. Amount adapts and evolves to enable your digital transformation. Its financial sector knowledge adds benefit in areas such as compliance requirements, revenue, operations, and more. Their mission is to help banks and financial institutions of all sizes swiftly improve their digital agility and energize positive change in how they offer value, impact, and relevance to clients.
7. Zirtue
Zirtue is a mobile relationship-based lending app that automates ACH loan payments for loans between friends, family, and trusted contacts. Both parties agree on a loan payback plan, and payments are made automatically through the payer’s bank account, eliminating the discomfort of requesting repayment. Zirtue, based in the United States, has seen a 60 percent increase in month-over-month growth as they aim to make the globe more financially inclusive. There are no costs associated with using Zirtue. However, a 5% annual percentage rate is sent to the borrower for the loan duration.
8. Prosper
Prosper, which was founded in 2005, was the first peer-to-peer lender in the United States. Since then, it has distributed approximately $19 billion in funds to over 1 million borrowers. Prosper is a pioneer of the peer-to-peer lending marketplace.
Investors can check their investment performance and manage their portfolios using Prosper’s mobile app. According to the site, around 84 percent of all investors attained or exceeded their anticipated return on investment. Furthermore, the average return on investment is 5.5 percent.
9. Peerform
Peerform was formed in 2010 by Wall Street professionals with banking and technological skills. They founded the platform after noticing that traditional lenders, such as banks, were hesitant to make loans to individuals and small company owners.
The solution was to establish a peer-to-peer lending network that would connect loan investors and borrowers. This would also allow investors to earn far greater interest rates on their assets than they could with standard bank investments such as money market accounts, savings accounts, and certificates of deposit.
Conclusion- Best P2P Lending Apps
These are all the top top peer-to-peer lending apps and networks available to today. As a borrower and as an investor, there is a decent mix of possibilities for peer-to-peer lending. Peer-to-peer lending is becoming a more practical alternative for those who need money and people who want to invest their money as it grows in popularity.
If you are in search of creating an online lending platform similar to Prosper, Peerform, etc then we can help you in building a similar one. We have an open-source peer-to-peer lending software for businesses called SocialWallet.
Check out iScripts SocialWallet
