Peer-to-Peer (P2P) lending is at the forefront of the new hybrid era abuzz with digital technologies. Using P2P lending platforms—a digital marketplace for loans—loan seekers can directly contact lenders without approaching banks or other traditional financing institutions. P2P lending eliminates traditional intermediaries and enables lenders to accrue higher interest rates than those offered by bank savings accounts and fixed deposits. In addition, it makes borrowing easier by reducing paperwork and enabling borrowers to raise loans at interest rates less than those charged by banks.
