Social Lending

January 22, 2014  |     |     |   0 Comment

Social lending (often referred to as peer-to-peer lending) is a form of lending in which individuals lend and borrow money from one another without a traditional financial institution as a middleman in the transaction.

The individual lenders are responsible for assessing the creditworthiness of the borrowers. Often the lenders don’t know the borrowers very well. Due to the higher risk and effort involved here, the interest rates in social lending are generally higher than rates on traditional loans.

Author: 

Kris Tabetando provides mergers & acquisitions (M&A) advisory and brokerage services to Internet companies. He also partners with investors to acquire & manage Internet businesses.

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