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An Introduction to Peer-to-Peer Lending in the UK
When we think about lending or borrowing money, the usual suspect that comes to mind is a bank or other traditional financial institutions. However, with the evolution of technology and financial frameworks, a more direct avenue of lending has emerged. This is known as peer-to-peer (P2P) lending. If you’re intrigued by the landscape of personal finance and are always looking to explore new horizons, you’ll find P2P lending particularly interesting.
This post is originally from portfolio-hub.co.uk
P2P lending is essentially a method of debt financing where individuals can lend and borrow money without the need for an official financial institution as an intermediary. The removal of middlemen from the process often results in more favourable interest rates for both lenders and borrowers.
In the UK, P2P lending has been growing in popularity over the last decade, providing a viable alternative to traditional lending mechanisms. This financial innovation forms a part of the broader umbrella of Personal Finance, providing an additional tool for managing and investing money.
Understanding Peer-to-Peer Lending
So, what exactly is peer-to-peer lending, and how does it function in the realm of finance? At its most basic, peer-to-peer lending…
