Want to know which is the best peer to peer loan? lists the best platforms with P2P loans for you who are looking for good loan terms and a quick application process. With our service you can compare costs and conditions for different peer-to-peer loans.
What are peer to peer loans?
Peer to peer loan – is a loan where you borrow money directly from other people via a digital marketplace instead of from a bank or a credit institution. Sometimes this new type of loan is called “P2P loan” (from English’s peer-to-peer lending). The new technology makes it possible to create a digital platform where private individuals can borrow money directly from each other online. The loan process is managed by a company that matches borrowers and lenders with each other and administers payments of loans and repayments. To help you choose the best peer to peer loan , we have listed the main platforms below so you can compare:Compare peer to peer loans
Tips when comparing peer to peer loans!
When comparing peer-to-peer loans, it is important that the comparison is adjusted according to your situation and your borrowing requirement. You can compare different loan platforms with each other to then decide which peer to peer loan gives you the best value for money. In the table above you can sort by several different parameters and also get more information about each peer to peer loan if you click on the link [More info].
Other important tips and things to consider when comparing peer to peer loans are:
- How is the interest rate calculated? The interest fee is the cost that you pay to borrow money through a peer-to-peer loan. The most common is that the interest rate level is individual and is based on the credit assessment made by you in connection with the application. The cost or interest is calculated as an annual fee in percent (%) of the outstanding loan amount and you then pay each month together with the repayment of the loan.
- Compare the effective interest rate! It is important to examine and compare how large the total cost of the loan will be. This is done by comparing the so-called effective interest rate. The effective interest rate on a loan shows the level of fees in per cent per year and includes the interest on the loan + other fees (such as any lay-up fee, notification fee). All loan actors in the Swedish market must report the effective interest rate when they offer a loan or give a loan offer. By comparing the effective interest rate, you avoid being tricked by “lock prices” from different players and then get a correct picture of the actual cost of the loans you compare.
- Loan terms and requirements? The loan terms are of great importance when comparing different peer-to-peer loans. Therefore, it is important that you examine how the terms and conditions look for the loans that you are interested in and compare. The requirements for you as borrowers differ slightly between the different marketplaces. Therefore, investigate what requirements the loan company places on you as a borrower in terms of, for example, age, income and whether you must be registered in Sweden or not?
- Loan Amount? All lenders have a fixed limit on the minimum and maximum possible loan amount. Therefore, choose a lender that offers a loan amount that matches your borrowing requirement. Usually, the maximum loan amount is based on the credit assessment made by you and which then takes into account how large your income is and how your credit history looks.
- Payment Note? Most lenders require you not to have any payment remarks because you are going to borrow money. But there is also the possibility to borrow money with a payment note via peer to peer loans. Loanstep , for example, accepts borrowers with a payment note about the personal finances and the credit picture otherwise looks good.
Choose the peer to peer loan that suits you best
After you have sorted out the best conditions for different robot advisers, you should choose the manager that is most suitable based on your conditions. It can then be good to start from:
- Total cost . The total cost is by far the most important factor when choosing which peer to peer loan can best suit you. You should choose the loan with the lowest effective interest rate. All lenders are required to present the effective interest rate when they submit a quote.
- Maturity . The length of possible repayment period differs among peer-to-peer loan companies. Some loan companies offer shorter maturities that start in 6 months and then extend up to a maximum of 15 years. The cost is affected by how long you want to borrow the money, as you always pay interest on your loan. At the same time, it is a trade-off not to have an all too short repayment period. The shorter the maturity, the more you have to repay each month in amortization on the loan, while at the same time a longer maturity gives a lower monthly cost but a higher total cost.
- Permission from Finansinspektionen . In Sweden, it is required that all peer-to-peer loan companies have permission from the Swedish Financial Supervisory Authority to conduct business. All the companies we list above are professional and are licensed to conduct peer-to-peer loan operations. If you find another newly started company on the Internet, we recommend that you first examine the company register on the Swedish Financial Supervisory Authority’s website if they have permission.
When you finally found a peer-to-peer loan that you are interested in, you can get more information by clicking the [READ MORE>] button to the right in the table above. You then come to the loan company’s website where you can apply directly and find more information on how to proceed to borrow. Compare options
Summary: Peer to peer loans
Peer to peer loans are a very good alternative loan form, but finding the best peer to peer loan online is not easy as there are several different players and marketplaces to choose from. If you are still unsure after trying our tool in the table, then can you always check if any of the loans under the category P opular peer to peer loans higher up the page would suit you? These are loans that belong to Sweden’s most popular and best peer-to-peer loans. They are usually also included in the top list when our users choose peer to peer loans and leave their customer rating. To sum up, we recommend that you compare fees, terms and conditions and read about each loan to get as good a view as possible about which peer to peer loan is best for you.