Glossary of Peer to Peer Lending Terms.
Peer to peer lending - Borrowers
and lenders transact business without the traditional intermediaries, such as
banks. Using the internet enables peer lenders to locate peer borrowers and vice-versa.
This model connects borrowers with lenders through an auction-like process in
which the lender or lenders willing to provide the lowest interest rate "wins"
the borrower's loan.
P2P lending - Shortened version of
peer to peer lending.