What Are Peer To Peer Loans?

Peer to peer loans are a match between individual borrowers with investors who are looking to make a return. It can also be known as social-lending or crowd-lending. It’s money for people, from people.

With increasing popularity, peer to peer loans have fast become a competitive alternative choice in the lending market. Also known as P2P, the interest rates are at least as good, if not better than rates provided by banks or other lenders.

As lenders are matched with borrowers online, the middle-man is cut out. This means we are able to offer highly competitive and ultimately fairer rates for both sides. Everyone’s a winner.

Borrowers benefit from lower interest rates and are rewarded for staying on track, whilst lenders are offered higher interest rates for their investment.

At Leap, we want to make your money work for you by keeping fees low and opportunity high. We believe that making connections is important. By connecting borrowers directly to investors, peer to peer loans can offer fairer rates and more rewards, so both sides can save money.

Whether you’re looking to invest or to borrow, we want you to use peer to peer loans as an opportunity to improve your financial wellbeing. Find out how peer to peer loans work with our guide. 

A woman is looking out of the window while taking a mobile phone call at her desk, in an office

What Are The Benefits of Peer to Peer Lending?

As a lender, you can make your money go further by investing in peer to peer loans. Unlike a traditional savings account, you can earn up to a 5% annual return rate over 1-5 years, so you can make more of your savings with P2P lending.

With Leap, you can invest in a diverse portfolio of loans to make a healthy return. We minimise the risk involved in P2P lending so you can focus on the rewards.

We use diversification to mitigate the risk by spreading your investment across at least five accounts. Teamed with our ever-evolving credit checks and extensive vetting, we will find you the best fit for your financial needs.

Other advantages of P2P lending with Leap include:

  • It is free to invest in Leap
  • You can get started by lending as little as £50
  • Choose your own rate and that will be the minimum rate you will earn
  • You’ll have control over whether to reinvest or withdraw your income on a monthly basis
  • Earn interest over 1-5 years

A serene landscape view of a lake which separates a mountain range from a dense forest. There is young woman looking over the water from a pile of rocks to the right-hand side of the scene.

What Are The Benefits of Peer to Peer Borrowing?

We want you to take control of your finances and get smart with money.

The biggest advantage of P2P borrowing is the competitive rates. Refinancing your loan with peer to peer could help you achieve lower interest rates than credit cards or store cards, so you can do more of what you love with your money. 

It’s good to feel good about your finances, so at Leap, we will reward you for staying on track and repaying your debt. If your overall debt hasn’t increased over 5% we’ll assess whether we can lower your monthly repayments to free up your money. Better still, you can make larger monthly payments or pay off your loan completely with no penalties.

Other advantages of P2P borrowing with Leap include:

  • Loans of up to 25,000 and terms up to 60 months
  • Lower monthly payments
  • Competitive representative APR
  • Fast, efficient process
  • Rewards for reducing debt
  • No hidden fees
  • Small origination fee
  • No penalty for paying early

Key Takeaways

  • Peer to peer loans connect borrowers and investors, creating relationships where both benefit from fairer rates and transparent fees.
  • Peer to peer lending allows individual investors to get a better return on their cash savings than a bank savings account, or other traditional investments.
  • Peer to peer borrowing offers an alternative to traditional bank loans, store cards and credit cards which is good for refinancing.

Think you could benefit from a peer to peer loan or investment? Explore what we can do for you and your money.

We use cookies, to find out more click here