The United Kingdom has been experiencing the presence of peer to peer loans for an almost a decade from now. This concept of lending money has certainly worked in bringing the lenders and the borrowers together bypassing traditional banks.
The basic difference for savers is that there is as such no guarantee that the money will be repaid. This is so because the funds on loan through a peer-to-peer website are not covered by the government backed Financial Services Compensation Scheme (FSCS), which protects bank savers up to 75000 Euros.
For the borrowers there is no distinction between peer-to-peer and traditional bank loans. This simply means that the borrowers can make their final decision based on the interest rates offered to them.
Though, there have been many people who take this concept in good light but still the concept is widely accepted by the people. With the passage of time, more and more people are going this simple way of peer-to-peer loans in UK resulting in the good popularity in current time.
The good part on the lenders which basically include lending websites, say that they perform credit checks on prospective borrowers and also do the follow-up for the repayments on your behalf. This certainly means that if there is bad, there is definitely something good too.
In fact, there are companies who are very strict particular about the loans even though it is peer-to-peer loan. They do take care of the fact that the deal does not adversely affect both lenders and the borrowers.
The conclusion simply lies in the fact that you can also go for this highly prevent method of lending money and vice-versa. Certainly, the deal will not hamper your financial credit and assure up to a level that the borrowers need not pay as much they have to with banks and whereas the lenders get back their whole money at proper time.
If you are in need someday, you can also opt for this method and get out of the situation that requires ample amount of money for any of your personal requirements.