person-to-person lending

Definition

A form of lending and borrowing between individuals and not lending institutions. Person-to-person lending involves two sets of people; those individuals that have money to loan and people seeking to borrow money. The primary advantage of this form of lending is that it prevents borrowers from having to meet strict credit requirements and pay high interest rates. The lending party is subject to the most risk because the borrower may not pay them back. There are a number of websites that provide users with a platform to perform person-to-person lending transactions.
Also called peer-to-peer lending.
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person-to-person call Peruvian New Sol