After the global recession of 2008, trends surrounding lending have shifted considerably. People are starting to look at alternative options, especially after the general perception of the banks altered dramatically and they were seen to have let everyone down.
Process of loan application from a bank
Obtaining a loan through a banking institution is fast becoming an option most people would rather avoid. When applying for a loan with a bank, you will first need to choose the product, then apply for the loan which requires a mountain of documents to be submitted. The wait can take anything up to around three months before your loan is decided upon, and even then if it is approved, you are then faced with high interest rates and repayments that can financially exhaust you.
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P2P leading the way to affordable loans you can control
Due to the fact that peer to peer (P2P) lending is all done online, fees can be kept lower as they are dependent on factors such as your credit history, how much the lender wishes to earn and the size of your loan. This will also be considerably less than the bank as P2P lending has cut out unnecessary costs of extra staff or building rentals to pay for. Applying for the loan online, whether it is a new small business loan or a peer to peer personal or student loan, is really simple, and only takes about 20 minutes. You are then assessed for your credit rating and within a couple of days, you will be advised as to whether you are approved. Once your application has been approved, you will be informed of the repayment interest amount and can then decide how much time you feel you need to pay your loan off. As a bonus, should you decide to pay the loan off sooner, you will not be charged additional settlement fees.
Using a credit card to settle debt is not a great idea
If you have ever considered using a credit card to consolidate debt or to take a loan for whatever reason, you will find that using P2P lending sites saves you about 70% of the fees that you will be charged when it comes to paying off your credit card loan.
As loans become easier and more affordable through P2P lending, CompareLend.com is a comparator site allowing ease of finding who can benefit your personal P2P needs. With around 320 companies worldwide offering this new and improved way of borrowing money, it only makes sense to keep things simple, and with a website like CompareLend.com, you can use this one-stop meeting place to see just with whom you want to apply for your loan.