How To Borrow Money Online (Person To Person, Peer To Peer)
Thanks to the internet, borrowers can meet individuals who want to lend money directly to other people. (This is known as "Social lending.") The amount of the loan, the rate of interest, and the repayment terms are all negotiable.
People who need to borrow money post a listing explaining why they need to borrow money. Consumers with money to lend bid on the loans including a rate of interest set by the potential lender.
In addition to posting detailed credit and income information, borrowers can post photos of themselves surrounded by whatever they think will help increase interest in theiir situation.
To help attract a loan, borrowers can align themselves with groups that employ entry criteria.
The sites generally charge an origination fee plus a percentage of the amount raised.
It is advisable to only use sites which are reputable because you will be required to enter your personal financial information as well as the reason for the loan (which may disclose your health condition so be cautious if your employer does not know about your health condition).
A few reputable sites to consider are the following:
After an online form is completed, the sites generally take a few days to verify your information. Then they send your loan request to prospective lenders. According to a reliable source, most loans are funded within a week.
It is worth keeping in mind that there is also the moral risk that the lender will be a person who uses extra-legal physical means if a loan is not repaid in a timely manner. Thus, it is advisable to learn as much as you can about the lender.
If you can borrow money from family or friends, look at our article about how to approach people who are close to you, what to say, and how to evidence the debt. You can also use a sitre such as www.VirginMoneyUS.com which records the loan and automates the process.