Peer-to-Peer Lending: Chasing Higher Yields with P2P

P2P platforms connect individual lenders directly with borrowers, often offering higher interest rates than banks.

Default Risk

P2P loans are unsecured. If a borrower stops paying, you can lose your entire investment in that loan.

Diversification is Vital

Don't put all your money in a few loans. Spread your investment across hundreds of small loan portions and 'notes'.

Regulatory Landscape

Laws around P2P lending vary wildly by country. Ensure you use a reputable and licensed platform.