This article is a part of a series on P2P Lending:

1. P2P Lending Overview

2. P2P Borrowers

3. P2P Lenders

4. P2P Lender Profile: Prosper

5. P2P Lender Profile: Zopa


P2P lending borrowers pay lower interest rates since there is no bank overhead. Loan payments are automatically withdrawn from the borrower's regular bank account.

P2P lending is similar in many ways to eBay. Borrowers create a listing where they specify the amount, loan duration, and loan interest rate they seek. Additional information can include the reason for the loan and other personal comments. Listings may be able to be watched, emailed, linked to, bookmarked, promoted, or even reported if improper.

There is a financial valuation that can include a Personal budget, income and asset verification, and credit check, to determine the credit worthiness of a borrower. The lower a person's credit risk, the lower their interest rate and loan payment will be.

Lenders bid on borrower offers. Upon a successful bid lender funds are automatically deposited into the borrower's account.