Peer to Peer lending platforms growth has exploded in the last decade. Many find this to be a great alternative to traditional funding sources. Here are some of the more popular P2P platforms, but as always, please do your own due diligence before using these services.
Lending Club
Lending Club is one of the largest peer-to-peer lending websites. Their peer loans platform was founded in 2007. Many P2P loan investors feel that Lending Club’s website has the best user interface.
- Maximum Loan Amount: $35,000 ($300,000 for business loans)
- Minimum Loan Amount : $1,000 ($15,000 for business loans)
- APR: 5.99% to 32.99%
- Interest Rate: 5.9% to 25.9%
- Term of Loan (years): 1, 3 or 5
- Minimum Credit Score Required: 660
- Maximum Debt-to-Income Ratio: 35%
- Loan Type: Unsecured loan
- Origination Fee: 0.99% to 5.99%
- Application Fee Charge: None
- Prepayment Penalty Cost: None
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Prosper Marketplace
The Prosper lending platform made history when they became the first peer-to-peer lending site in the United States in 2006. Recently, they were named by Forbes as one of the most promising companies in America.
- Maximum Loan Amount Available: $35,000
- Minimum Loan Amount Available: $2,000
- APR: 6.73% to 35.97%
- Interest Rate: 6.05% to 31.90%
- Term of Loan (years): 3 or 5
- Minimum Credit Score Required: 640
- Maximum Debt-to-Income Ratio: 30%
- Loan Type : Unsecured loan
- Origination Fee: 1% to 5%
- Application Fee Charge: None
- Prepayment Penalty Cost: None
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Upstart
The Upstart lending site began providing P2P loans in April 2014. They aim to help those who are under-served by traditional loan companies but are filled with potential. The company’s loan products are meant to serve a young population that is very likely to build a solid credit profile in the future, but has not done so yet.
- Maximum Loan Amount Available: $35,000
- Minimum Loan Amount Available: $3,000
- APR: 5.67% to 29.99%
- Interest Rate: 5% to 25.26%
- Term of Loan (years): 3
- Minimum Credit Score Required: 640
- Maximum Debt-to-Income Ratio: 40% to 50%
- Loan Type: Unsecured loan
- Origination Fee: 1% to 6%
- Application Fee Charge: None
- Prepayment Penalty Cost: None
Sofi
Sofi is a highly respected marketplace lending website, with nearly $3 billion in peer-to-peer loans issued to this date. Their nontraditional loan underwriting approach takes into account merit and employment history among other determining factors.
- Maximum Loan Amount Available: $100,000
- Minimum Loan Amount Available: $5,000
- APR: 5.5% to 8.99%
- Interest Rate:
- Term of Loan (years): 3, 5 or 7
- Minimum Credit Score Required: Varies
- Maximum Debt-to-Income Ratio: Varies
- Loan Type: Secured loan
- Origination Fee: None
- Application Fee Charge: None
- Prepayment Penalty Cost: None
Funding Circle
Funding Circle is one of the world’s biggest peer-to-peer lending sites with a focus primarily on small business loans. Their U.S. co-founders started the peer-to-peer lending site because they were small business owners themselves and were rejected for small business funding at every turn.
- Maximum Loan Amount Available: $500,000 for business loans
- Minimum Loan Amount Available: $25,000 for business loans
- Interest Rate: 5.99% to 20.99%
- Term of Loan (years): 1 to 5
- Minimum Credit Score Required: 620
- Maximum Debt-to-Income Ratio: Not Disclosed
- Loan Type: Secured loan
- Origination Fee: 2.99%
- Application Fee Charge: None
- Prepayment Penalty Cost: None
Peerform
Peerform was started by Wall Street executives in 2010 and has built a good track record of giving borrowers an opportunity that the banking system that is transparent, fast and easy to understand.
- Maximum Loan Amount Available: $25,000
- Minimum Loan Amount Available: $1,000
- APR: 7.12% to 28.09%
- Interest Rate: 6.4% to 25%
- Term of Loan (years): 3
- Minimum Credit Score Required: 600
- Maximum Debt-to-Income Ratio: Varies
- Loan Type: Unsecured loan
- Origination Fee: 1% to 5%
- Application Fee Charge: None
- Prepayment Penalty Cost: None
FreedomPlus
FreedomPlus was founded in 2013 and is one of the newer companies, but has already demonstrated success in the personal loan industry.
- Maximum Loan Amount Available: $35,000
- APR: 9.99% to 29.90%
- Interest Rate: 8.99% to 26.99%
- Term of Loan (years): 2-5
- Loan Type: Unsecured loan
- Origination Fee: 1.38% to 5%
- Prepayment Penalty Cost: None
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