Crowd Lending
Content
Definition
Crowd Lending, also known as peer-to-peer lending, involves borrowing money directly from a large number of people without the intermediation of a traditional financial institution.
Usage and Context
Crowd lending lets people or businesses borrow money straight from others. It skips banks and goes online to match lenders with borrowers.
Frequently asked questions
- What is peer-to-peer lending also known as? Peer-to-peer lending is also called crowd lending. It`s where you borrow money directly from other people online, not from banks.
- Why is peer-to-peer lending popular? Peer-to-peer lending is popular because it`s easy and fast. Borrowers can get money directly from others without dealing with banks.
- Why is peer-to-peer lending risky? Peer-to-peer lending can be risky because there`s no bank involved. If the borrower doesn`t pay back, the lender might lose their money.
Benefits
Crowd lending can be cheaper and faster than traditional loans. It offers more flexibility for both borrowers and lenders.
Conclusion
Crowd lending is a modern way to borrow and lend money. It cuts out banks and brings people together online to deal with money directly.
