Peer to peer lending or person to person lending is generally a financial transaction(lending and borrowing) which occurs between individuals without the interference of an financial organization.

In Peer to Peer lending over the Internet, the borrowers who wish to obtain loans post a listing in which they mention the interest rate they can afford. Lenders then start to bid to fund for the loan in a auction-like process. In this process competition between the lenders leads in the fall of interest rates. This helps the borrowers to obtain loans at lower interest rates.

Peer to Peer lending over the Internet has improved over the years and is still on a high. Even though the numbers are small when compared to traditional banking institutions' they are growing at an amazing pace year by year.

Peer to peer lending or person to person lending is generally a financial transaction(lending and borrowing) which occurs between individuals without the interference of an financial organization. Financial services which are specially meant for low-income individuals and self-employed are generally referred to as Microfinance. Today all over the world there is a strong belief that microfinance is the only way through which poor people can get out of poverty.

Peer to peer lending is also known as person to person lending, is generally a financial transaction which occurs between individuals without the interference of an financial organization.

Peer-to-Peer lending or Person-to-Person lending, is generally a financial transaction which occurs between individuals without the interference of an financial organization. In this process borrowers in need of loans list a posting with the details of the amount they require and interest rate they can afford. Lenders then start bidding in a auction-like process and the lender who offers lowest interest rate wins the borrowers loan.

Peer to peer lending is also known as person to person lending, is generally a financial transaction which occurs between individuals without the interference of an financial organization.

Peer to Peer lending over the Internet has improved over the years and is still on a high. Even though the numbers are small when compared to traditional banking institutions' they are growing at an amazing pace year by year.