Loans Canada Launches Free Credit Score Portal And Is Recognized As One Of Canada’s Top Growing Companies
Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
Online lending is scarily accessible right now, right from your phone or desktop.
The banks and credit unions now have online competition for online loans and more. Thanks to fintech, everything related to money is now online.
One of the new online lending resources is peer-to-peer (p2p) lending. If you have debt or you need a loan, these platforms are a good place to find a loan that fits your situation. Get your credit score ready, because we are bringing you the best P2P lenders right now.
A Peer-to-Peer lender (P2P) is a lending company that facilitates a marketplace for lenders and borrowers to come together and conduct business. The P2P lender does not directly act as an intermediary but instead helps match borrowers with lenders through an online platform.
|Amount||Interest||Term (months)||Best For|
|$1k – $500k||4.96% – 24.93%||–||Business loans|
|$1,000 to $25,000||7.5% – 31.5%||36 or 60||Unsecured personal loans|
|Up to $1,000||varies||varies||Small short-term loans|
Founded in 2014, Lending Loop has the distinction of being Canada’s first P2P lending platform for small businesses. They are based in Toronto and are regulated in all Canadian provinces and territories.
Small businesses can borrow up to $500,000 on the platform, and rates range from 4.96 % to 24.93%. Business owners wishing to gain access to loans on the platform must meet specific criteria, including earning $100,000 in yearly revenue and a 600 or greater credit score.
Lending Loop offers many options for lenders as well. Those looking to invest can use the platform’s Auto-Lend feature to automatically invest in a group of loans based on risk attributes they pre-select. The platform also provides considerable transparency regarding the number of loans issued per quarter, loan default rates, and the types of businesses borrowing funds.Learn More
GoPeer is a P2P platform that connects borrowers looking for personal loans with investors looking for an attractive return.
The Toronto-based firm serves borrowers with credit scores of 600 or higher and a credit history that spans at least 36 months. Applicants can borrow between up to $25,000, with terms ranging from three to five years.
GoPeer’s lending criteria are more stringent than other P2P lenders, so they may not be the best option if you have a substandard credit score.Learn More
Though known primarily as a news aggregator and discussion website, Reddit contains a subreddit called r/borrow that facilitates borrowing and lending. It’s used mostly by individuals who need small short-term loans but are struggling financially and have limited means to obtain credit.
Loans available on r/borrow are smaller than those of other P2P platforms, with the limit capped at $1,000. The approval process is informal, with no credit checks conducted. However, getting a loan can be a lengthy endeavour. You must be a member of the subreddit for 90 days before making a request. You must also have 1000+ karma points, which are part of a scoring system unique to Reddit that measures your contribution to the community.Learn More
You can access a variety of loans through a P2P platform:
These are probably the most popular types of loans available from P2P platforms. You can choose between a secured loan and an unsecured loan. Secured loans require you to put up collateral, while unsecured loans don’t. You can usually borrow between $1,000 and $40,000, though large sums are typically offered only to the most qualified applicants.
P2P platforms have recently expanded to offering business loans. If you’re looking to start or grow a business, P2P lenders can be a great alternative to traditional financial institutions.
You can use P2P lenders to consolidate your personal loans, credit cards, and other unsecured debt into a single loan with an affordable interest rate.
If you’re in the market for a new vehicle, but your poor credit score prevents you from obtaining financing, P2P lenders can help fill the gap. With a wide variety of lenders available on P2P platforms, you may have an easier time finding an auto loan with reasonable terms and a manageable interest rate.
The P2P lending process typically works in the following way:
Though P2P lending can be an excellent way to gain credit access, it may or may not be the right option for you. Ensure you examine both the pros and cons of this method of borrowing.
If you’re in the market for a loan, P2P platforms are a noteworthy alternative to banks and other traditional lenders. They offer competitive interest rates, lower overall fees, no prepayment penalties. They can be the place to turn to when you have no other options at your disposal. Though they are not as heavily regulated as banks and can charge you a high rate if your credit standing is low, it could become the new way you do your borrowing if you find one that works for you.
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