Vertaisluentoinnin

Vertaisluentoinnin, often translated as peer-to-peer lending or P2P lending, is a financial practice where individuals or businesses can borrow money directly from other individuals or institutions without the involvement of a traditional financial intermediary like a bank. This is typically facilitated through online platforms that act as marketplaces connecting lenders and borrowers.

In a typical P2P lending arrangement, a borrower seeking a loan applies through a platform. The platform then assesses the borrower's creditworthiness and assigns a risk rating. Lenders, who can be individuals or institutions looking to invest their capital, browse available loan listings. They can then choose to fund all or a portion of a loan based on their risk appetite and desired return.

The platform handles the loan servicing, including collecting payments from borrowers and distributing them to lenders, minus a fee. Interest rates for borrowers are often determined by the perceived risk of the loan, with higher-risk borrowers typically facing higher interest rates. Lenders, in turn, earn interest on their investment.

P2P lending offers potential benefits for both parties. Borrowers may find it easier to secure loans, potentially at more competitive rates than traditional banks, especially for smaller amounts or for those with less-than-perfect credit. Lenders can achieve potentially higher returns compared to traditional savings accounts or bonds, while also diversifying their investment portfolios. However, P2P lending also carries risks, including the potential for borrower default, which can lead to losses for lenders. Regulatory frameworks for P2P lending vary across different jurisdictions.