If you’re looking to get any sort of personal loan online, you’ll be hit with offers from hundreds of different finance companies and banks. Many of them are riddled by high interest rates and undesirable terms, but there are a few good options if you search around. If you’re looking to borrow money for a wedding, a car, a vacation or a major purchase, consider the option of peer-to-peer loans from a company like Prosper.com or Lending Club.
A loan that you receive from Prosper or Lending Club is just like any other personal loan, but instead a bank giving you money, the money that funds your loan comes from individuals. When getting a peer-to-peer personal loan from Prosper or Lending Club, you’re essentially cutting out the middle man (the bank), so that you can get a better interest rate and terms on a loan.
Peer-to-Peer personal loans from both companies amortize fully over 3 years. The interest rate that you pay will vary between 7% and 22% depending upon your credit score. The only fee that you’ll have to pay is a 1-5% origination fee on the loan. Every month your payment is deducted from your checking account and at the end of the three year term, your loan is paid in full.
The process of getting a personal loan from Lending Club or Prosper is relatively easy. The first thing you need to do is visit Prosper’s Loan Application Page or Lending Club’s loan application page and begin the process. You’ll have to fill out a simple loan application form online (there’s no application fee), then your loan will go into a funding process. After two weeks, your loan should be fully funded and then the money will be transferred to your account.
You should never take borrowing money lightly. Keep in check the amount of total debt that you have and work to pay it off as quickly as possible. If you find yourself in the situation that you do need a loan, using peer-to-peer personal loans is an excellent alternative to going to the bank.
