Peer-To-Peer Lending — Passive Income?

Is Peer-To-Peer lending a viable passive income hustle?

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Let’s talk about Peer-To-Peer lending.

1. What is peer-to-peer lending and how does it work?

Peer-to-peer lending, also known as P2P lending, is the practice of lending money to individuals or businesses through a website or app that connects lenders and borrowers. It bypasses traditional financial institutions such as banks and credit unions.

Borrowers post a listing specifying the amount they need, the duration of the loan, and their desired interest rate. Lenders then browse and choose loans to fund. Once a loan is funded, the borrower begins making repayments to the lender.

Lenders earn interest on their loans, and borrowers save money by paying lower interest rates than they would with a traditional financial institution.

P2P lending is a relatively new phenomenon, but it has grown in popularity in recent years. In 2018, P2P lending platforms in the United States facilitated $36 billion in loans.

2. The benefits of using peer-to-peer lending platforms.

Peer-to-peer lending platforms provide a way for people to borrow and lend money without having to go through a traditional bank. This can be a great option…