Best peer-to-peer lending sites

Peer-to-peer (P2P) lending — sometimes called social lending or crowd lending — allows borrowers to get a loan from other individuals. It’s an alternative to getting a loan from a financial institution, such as a bank.

The P2P lending pool isn’t very large, but it’s still large enough to narrow down to six best platforms.

6 best peer-to-peer lending websites

• Best for new borrowers: Upstart
• Best for fair credit: LendingClub
• Best for good or excellent credit: Prosper
• Best for emergencies: SoLo funds
• Best for small businesses: Funding Circle
• Best for startups: Kiva

Best for new borrowers

Upstart personal loans

Finder Rating: 4.15 / 5
★★★★★

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It’s not uncommon to struggle to qualify with traditional lending options if you have a limited credit history. However, Upstart considers additional data like your education, work experience and more to determine your eligibility — there are over 1,500 variables taken into account during its underwriting process. Rates can be anywhere from 6.5% to 35.99%, there’s an origination fee between 0% to 10%, and loan amounts range from $1,000 to $50,000. There are late fees, though.

• Not available in: West Virginia

• Pros and cons

  Pros

  • Fair credit OK
  • Education and other data considered
  • One to three day turnaround time
  • Loans up to $50,000
  • No prepayment penalty

  Cons

  • No mobile app
  • Origination fee up to 10%
  • Late fee of $15 or 5% of amount due

• More details

  Loan amount	$1,000 to $50,000
  APR	6.5% to 35.99%
  Interest Rate Type	Fixed
  Minimum credit score	300
  Turnaround Time	1 to 3 business days
  Maximum Loan Term	5 years
  Minimum Loan Term	3 years

Minimum credit score	300
APR	6.5% to 35.99%
Loan amount	$1,000 to $50,000

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Best for fair credit: LendingClub personal loans

LendingClub personal loans

Finder Rating: 3.6 / 5
★★★★★

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The second P2P lender to the scene, LendingClub might be the most recognizable peer lending site. It offers a wide range of different types of financing, including personal loans, business loans and car loan refinancing. It has a relatively high starting interest rates and origination fees compared to other peer-lending platforms. But you may be able to score a lower rate and fee with this platform if you have less-than-perfect credit, compared to other peer lending websites.

• Not available in: Idaho, Iowa

• Pros and cons

  Pros

  • Low starting APR of 3.99% for auto refinancing
  • Coapplicants welcome
  • High Trustpilot rating

  Cons

  • Turnaround of up to 15 business days
  • Not available in every state

• More details

  Loan amount	$1,000 to $40,000
  APR	8.05% to 36%
  Interest Rate Type	Fixed
  Minimum credit score	600
  Turnaround Time	2 business days
  Maximum Loan Term	5 years
  Minimum Loan Term	3 years

Minimum credit score	600
APR	8.05% to 36%
Loan amount	$1,000 to $40,000

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Best for good or excellent credit: Prosper personal loans

Prosper personal loans

Finder Rating: 3.42 / 5
★★★★★

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Prosper is the peer lender that started it all when it launched its US platform in 2005. While its rates are higher than Peerform, it offers a wider range of loan amounts and it has a high debt-to-income (DTI) ratio cap of 50% make it particularly great for debt consolidation. But it might get expensive for borrowers who just meet the minimum requirements — it charges higher interest rates for lower credit scores than other P2P lending websites. It can also take up to five business days to get your funds, and its origination fee falls on the high side, even compared to other peer lending platforms.

• Not available in: Iowa, North Dakota, West Virginia

• Pros and cons

  Pros

  • Accepts DTI rates of up to 50%
  • Fair credit OK
  • No hard credit check for preapproval

  Cons

  • High maximum APR of 35.99%
  • Origination fee of 2.4% to 5%
  • Turnaround may be up to five business days
  • You must have at least three open credit accounts to qualify

• More details

  Loan amount	$2,000 to $50,000
  APR	6.99% to 35.99%
  Interest Rate Type	Fixed
  Minimum credit score	600
  Turnaround Time	Up to five business days
  Maximum Loan Term	5 years
  Minimum Loan Term	3 years

Minimum credit score	600
APR	6.99% to 35.99%
Loan amount	$2,000 to $50,000

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Best for emergencies: SoLo Funds payday loan alternative

SoLo Funds payday loan alternative

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SoLo Fund founder Travis Holloway created the platform as an inexpensive alternative to payday loans for people living paycheck-to-paycheck. Members of the SoLo Funds community fund small loans up to $500, in exchange for an optional tip instead of interest or fees. And you can receive your funds within one to two days of making a request. But it's best saved for situations where you can pay back the loan within a couple weeks — like paying an electric bill to avoid steep fees to restore service. Terms only last 15 days, with no option to roll over. Otherwise SoLo Funds charges a late fee of 15% of the loan, plus $5.

• Pros and cons

  Pros

  • Optional tip capped at 10%
  • Loans as low as
  • Short turnaround time for a P2P platform
  • Bad credit OK

  Cons

  • Short maximum term of Up to 15 days
  • Steep late fees compared to other short-term loans
  • Difficult to qualify with a past charge-off

• More details

  Loan amount	$50 - $1,000
  Interest rate type	Fixed
  Loan Term	Up to 15 days
  Turnaround time	As soon as the same day

Loan amount	$50 - $1,000
Turnaround time	As soon as the same day

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Best for small businesses: Funding Circle business loans

Funding Circle business loans

Finder Rating: 4.4 / 5
★★★★★

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Funding Circle is one of the only peer lending platforms that specializes in business loans. Founded in 2010, Funding Circle aims to bring more financing options to growing businesses and high returns for investors. Since, investors have poured some $11.7 billion into over 81,000 small businesses. Its rates are low for a business lender, starting at 11.29%. And you can qualify with fair credit. But it doesn’t offer loans under $5,000, making this a better option for large, one-time expenses.

• Pros and cons

  Pros

  • Low starting APR of 11.29%
  • Loans as high as $500,000
  • Accepts fair credit

  Cons

  • High starting loan of $5,000
  • Requires at least two years in business
  • High origination fee of 4.49% to 8.49%

• More details

  Loan amount	$5,000 – $500,000
  APR	11.29% to 30.12%
  Min. Credit Score	660
  Loan term	3 to 120 months
  Requirements	660+ personal credit score, 2+ years in business, for-profit business in an approved industry, not located in Nevada

Loan amount	$5,000 – $500,000
APR	11.29% to 30.12%
Min. Credit Score	660

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Best for startups: Kiva business loans

Kiva business loans

Finder Rating: 3.7 / 5
★★★★★

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Kiva is a nonprofit microlender that specializes in funding entrepreneurs and startups. It offers both peer-funded and direct loans. Its direct loans are interest-free — though you’ll have to crowdfund part of it yourself through your own social network. Its peer-to-peer loans are funded with $25 investments from the public. While anyone can invest, you won’t make a profit — and might not get all of your money back. The main reward is supporting a cause that you believe in.

• Pros and cons

  Pros

  • No minimum credit score
  • Available to entrepreneurs
  • Direct and P2P options

  Cons

  • P2P loans can come with interest, unlike direct loans
  • No return for investors
  • Potentially long turnaround

• More details

  Loan amount	$500 – $15,000
  APR	0%
  Loan term	1 to 3 years
  Requirements	Have at least five friends and family members willing to contribute to your loan, live in the US, ages 18+, not in bankruptcy or foreclosure, not under any liens not engaged in: multi-level marketing, direct sales, pure financial investing or illegal activities.

Loan amount	$500 – $15,000
APR	0%

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Best P2P sites: By the numbers

Use this table to quickly compare our top choices for peer-to-peer lending sites.

None of these P2P lenders seem like the right fit?

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How we picked the best providers

We determined the list of best P2P lending sites on interest rates offered, origination fees, range of loan amounts and average turnaround time. We also considered factors like the types of loans available, eligibility requirements, customer reviews and Better Business Bureau ratings.

What changed in 2022?

We removed the once-popular P2P lending site Peerform — as of July 2022, it’s no longer accepting new applications for loans. 

We added Upstart to our list of best peer-to-peer lending sites. Upstart allows borrowers to upload alternative information to their application for consideration for financing, such as education. This unique lender may be a decent option for younger borrowers who have yet to start building a credit score or borrowing history.

What is peer-to-peer lending?

P2P lending involves borrowing from individual investors instead of banks or financial institutions — like a two-party agreement between you and the investor.

It's pretty simple: You send in an application and an investor decides if they want to fund the loan. If you move forward and get the funds, the investor makes money by collecting the interest.

While banks and credit unions tend to have higher credit score requirements, P2P sites tend to offer decent rates for borrowers with fair to poor credit, often accepting borrowers with scores as low as 600. This is possible since they cut down on operating costs. P2P sites use algorithms to underwrite loans, have few physical offices, and rely on investors to provide funds.

How does peer-to-peer lending work?

Here’s how most peer-to-peer lending platforms tend to work:

1. Site sets details. The peer lending site sets the range of loan amounts, terms, rates and fees available for borrowers.
2. Check your rates. You can check your available rates by filling out a quick application. Typically this takes a few minutes and is based on a soft credit pull that doesn't affect your credit score.
3. Fully apply. If you decide to fully apply, the site uses an algorithm to underwrite each application.
4. Approval. Once approved, you'll receive a letter grade that determines your rates and fees.
5. Investor funding. Investors select loans to fund based on the letter grade. Lower letter grades have a higher risk but higher returns.
6. Get your funds. Once an investor funds your loan, the platform transfers the funds to your bank account. Typically, this takes one to five business days.

After receiving the funds, you'll repay the loan in monthly installments and the investor collects on interest.

What kinds of loans do P2P platforms offer?

P2P lending sites may offer the following types of financing:

• Unsecured personal loans for debt consolidation, a home improvement project or other large, one-time expenses — without collateral.
• Unsecured business loans for one-time business expenses without collateral. These are typically geared toward small businesses.
• Medical loans to pay for dental and healthcare procedures that your insurance doesn't cover. These are sometimes available directly through your healthcare provider.
• Mortgages or mortgage refinancing may also be offered, but mainly for primary or secondary residences.
• Student loan refinancing is another popular financing type with P2P sites, and can be well-suited for students looking to consolidate or get lower rates.

Other types of loans, such as car loans, aren't as commonplace.

Alternatives to peer-to-peer lending

P2P lending can have its advantages, but it’s not your only option.

• Direct online lenders offer traditional personal loans with a wider range of loan amounts, often lower APRs and no origination fee. However, you may need a high credit score (above 670) or long-standing credit history to qualify.
• Cryptocurrency lenders also offer personal loans with fewer requirements and fees, compared to your typical peer-to-peer lender. Crypto loans use your cryptocurrency as collateral, allowing you to access the value of that asset you already own without paying a capital gains tax for converting it to fiat. But because the value of crypto is so volatile, there's a higher risk of defaulting than you would face on a P2P loan.

If P2P lending doesn’t sound like the right fit for you, compare other personal loans here to explore all your options.

P2P lending as an investment

If you want to get in on some P2P lending action as an investor, here are some things to note:

• Investors often paid monthly. Investors can be paid each month as the borrowers make their monthly payments.
• You choose what you fund. With P2P lending, you get to choose what loans you fund. Many P2P lending sites assign letter grades for borrowers, helping you with the process.
• Income requirements. Being a millionaire isn't usually a requirement. Depending on the P2P platform, an annual gross salary of at least $70,000 may be sufficient, or you must have a specific net worth.
• Investment caps. Some platforms restrict how much you can invest, such as LendingClub, which caps investments at 10% of your net worth.
• Not FDIC protected. The Federal Deposit Insurance Corporation (FDIC) regulates and insures credit unions. With P2P lending, investors won't be reimbursed if the P2P lending site you're using goes out of business or fails.

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Name	Product	Filter Values	APR	Minimum credit score	Loan amount
Best Egg personal loans			8.99% to 35.99%	600	$2,000 to $50,000	A prime online lending platform with multiple repayment methods.	Go to site More Info	Compare	loading Fetching your data...
Upstart personal loans			6.5% to 35.99%	300	$1,000 to $50,000	This service looks beyond your credit score to get you a competitive-rate personal loan.	Go to site More Info	Compare	loading Fetching your data...
Bankrate			4.98% to 35.99%	Poor to excellent credit	$1,500 to $100,000	Go to site	Compare	loading Fetching your data...
Achieve personal loans			7.99% to 29.99%	600	$1,000 to $50,000	Consolidate debt and more with these low-interest loans. Cosigners welcome.	Go to site More Info	Compare	loading Fetching your data...
Upgrade personal loans			7.96% to 35.97%	620	$1,000 to $50,000	Affordable loans with two simple repayment terms and no prepayment penalties.	Go to site More Info	Compare	loading Fetching your data...
LightStream personal loans			5.99% to 23.99%	Good to excellent credit	$5,000 to $100,000	Borrow up to $100,000 with low rates and no fees.	Go to site More Info	Compare	loading Fetching your data...

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