What kind of loan is Peer-to-peer (P2P) loans

 

 

Peer-to-peer (P2P) loans are a globally recognized form of lending in which people borrow and crowdfund each other according to agreed terms. The investor is looking for borrowers to match his investment wish. If he finds what he is looking for, he makes a financing offer to our partner bank, Lite Lender, to buy a portion of the receivable from this loan. If sufficient financing offers come together, our partner bank grants the loan and sells the partial claims on to the participating investors. Only the financing offers of investors that are most favorable for the borrower are taken into account until the desired loan amount is reached. The higher the interest rate offered by the investor, the less likely it is to participate. The borrower always receives the most favorable terms for him. Borrowers and investors remain anonymous to each other, only the identity must be disclosed to the platform provider.

A peer-to-peer loan is the oldest form of loan in the world: people have always borrowed money from each other and agreed the terms of the loan itself. Nowadays, digitization has made it possible to create a marketplace online where people can borrow money quickly and easily while remaining anonymous. P2P loans are part of the modern sharing economy.

P2P lending is carried out via an online credit platform and thus offers a modern, flexible and transparent way of agreeing the loan terms. In practice, borrowing through a peer-to-peer loan platform is not very different from applying for credit from a bank. Similarly, the borrower completes a loan application and when the loan offer is received and accepted, the amount is paid into the borrower’s account. The borrower does not have to search through all loan offers separately, only the cheapest offer is shown, which can include dozens of lenders. Borrowers and lenders do not need to agree the loan terms separately, everything happens automatically in our online service. Astro Finance takes care of the entire credit-related administration between the parties involved.

A P2P loan is a simple alternative to a bank loan. Although the loan is financed by several investors, the loan amount is paid out in one amount by our partner bank of Lite Lender. Likewise, the monthly installments are repaid to a single account and only then categorized by Lite Lender to the investors involved.

P2P interest

P2P interest

P2P loans are an agreement between two people and we as a company do not state the interest rate. Instead, the interest rate is created through an auction where lenders compete to fund your loan. Only lenders who offer the cheapest interest rate are given the opportunity to fund your loan application. This enables the borrower to always be offered the cheapest financing option. After receiving the loan offer, the borrower can decide whether to accept or reject the offer. The better the borrower’s credit rating, the better offers the lender can get. It is therefore recommended that all information be filled in correctly so that lenders get a clear picture of your solvency. Due to the market-based interest rate, peer-to-peer loans have become an advantageous alternative on the credit market when comparing the interest rates of different lenders on unsecured personal loans.

credit terms

credit terms

  • Loans up to 10,000 USD
  • Interest from 3%
  • Monthly repayments from $ 25
  • Loan term 2-7 years
  • No collateral or guarantee required
  • Non-binding online loan agreement. Filling out takes only a few minutes

The loan term is 2-10 years. However, you can repay your loan at any time and at no additional cost. You can also request payment-free months and postpone the due date by two weeks.

Loans from person to person

P2P loans have increased significantly since crowdfunding is now a globally recognized and flexible form of financing. Today, fast-moving loans are often discussed, such as SMS loans. However, P2P loans are a real and safe alternative to bank loans. It is a cheaper and more flexible loan for borrowers compared to the instant loans mentioned above. Our online service works without hidden costs and enables the borrower to have a flexible loan term. Loans without collateral, quick and easy. Use the loan calculator and find a suitable monthly installment that matches your desired loan amount. It only takes a few minutes to fill out a non-binding loan request.

Calculate your monthly rate

Calculate your monthly rate

The credit rate is determined individually based on the creditworthiness of the borrower and the offer by the lender. The offer calculated in the loan calculator is based on the average interest rate of all loans available in the system. Product information: net loan amounts from $ 1000 to $ 10,000; Terms from 24 to 84 months; monthly payment in installments; Installments from $ 44 to $ 440; fixed borrowing rate of 3% to 8% pa; effective annual interest rate of 8.12% to 13.74% pa, each including a one-time agency fee of 3% to 6% of the loan amount and an administration and account management fee of 0.0012% to 0.22% of the loan amount to be paid monthly with the installments; Representative example (creditworthiness required): net loan amount 2000 $; effective annual interest rate 13.45% pa, fixed borrowing rate 8% pa, term 24 months, 24 installments of $ 91.97 each; one-time agency fee of 3%, monthly agency fee of 0.076% to be paid in installments; Total amount to be paid by the consumer is $ 2207.34.

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