10 Best Peer to Peer Lending Platform for INVESTORS

As investors looking for where to invest money, especially on a lending website, considering peer-to-peer lending websites isn’t a bad idea.

Peer-to-peer is also known as P2P is a kind of financial platform that provides business owners or people access to unsecured loans from investors without the need of middlemen or traditional financial institutions.

Checkout: 10 Best DeFi Lending Platforms 2023

Investors use P2P lending platforms or websites to fund fully or partial consumer loans with, of course, an interest or expected return on their investment.

However, investors should be aware that just like most investments, peer-to-peer lending also comes with risk.

That is why it is advisable for investors to diversify their risk by spreading these investments across different borrowers and platforms. This way, investors are at less risk of putting all their entirety in a single investment.

This article is set to provide P2P investors with the best P2P lending platforms, acquainting them with their pros and cons before considering any other investment option.

Here are the 10 Best Peer-to-Peer (P2P) Lending Platforms/websites for Investors:


This is the largest P2P lender in the world which has offered more than a billion-dollar since it began and has boasted positive returns for investors.

Lending Club is known for having one of the highest returns on investment, previously in 2018, the average annual return on investment was within 8% to10%. However, the current rate is unknown.

Investors must pay a1% annual fee and can invest anywhere from $1,000 to $40,000, it provides investors with options to choose their investments manually or let the system automatically choose for them.


  • It is well vetted
  • High yield for investors
  • 1% annual fee


  • The platform no longer allows investors to pay in notes in other words, smaller investments in partial loans.


SoFi was founded in 2011 as a platform for student loan refinancing but currently offers other types of loans such as personal loans and mortgages.

This lending platform offers competitive rates for investors with APRs ranging from 5.74% to 20%. And in most cases, investors do not pay any fees to the platform.

If you already have a SOFI account, it is a great option for you as it is very easy to move money between SOFI Money and SOFI Invest account.

SOFI has all you need with complimentary access to certified financial planners if you have questions. It is available for US residents.


  • No minimum to start investment
  • Cryptocurrency trading available for bitcoin, ethereum and other digital assests.


  • Currently only available for US residents
  • Limited track record unlike other platforms

3. Prosper Marketplace

Prosper Marketplace is the first peer-to-peer lending marketplace in the United States. Investors can fund borrowers’ loan requests up to $40,000.

This platform provides a mobile app for investors to track their investment performance and manage their portfolios. Investors are granted access to borrowers’ credit scores, histories, and ratings to help them make good lending decisions.

In this platform, many investors met or exceeded their expected return on investment, the company claims a historical average investment return of 5.5% for investors on the platform.

The sweet thing about Prosper is that investors can invest with as little as $25 and pay $1 annual servicing.

Prosper investors have historically received returns on their investments ranging from 5.48% to 10.78% ROI.


  • You can invest as little as $25
  • Your investment can be track and manage using a mobile app


  • Investors cannot invest more than 10% of their annual net worth


This platform provides investors with well-vetted investment opportunities that provide favorable risk-adjusted returns. Peerform investors have historically received an average rate of return of 9.88%.

Investors are helped with compiled risk-adjusted portfolios to meet their needs. Loans are repaid in monthly installments. Investors can also set forward goals.

This platform provides investors with a transparent experience as investors experience a solid risk-adjusted return. Investors can invest in whole or fractional loans, depending on their risk tolerance.


  • It is transparent
  • Borrowers are well-vetted
  • High yield
  • Low risk


  • Available for five states only
  • There are no payment penalties


This is a well-reorganized p2p latform that uses a basic scoring model to carefully vet all borrowers. It requires a minimum of $100 and has a 0.5% annual fee like some other platforms.

It provides investors an opportunity to diversify their portfolios. Investors must have $200,000 or more as annual income before they can be considered for accreditation.

Once a loan is funded by an investor, the investor receives principal and interest payments until the loan is paid in full.


  • Adjust risk as applicants are vetted
  • Principal and interest payment until loan is paid off
  • 0.5% annual fee


  • Risk of delay in payment
  • Borrowers on the platform are younger hence, they have limited credit and employment history


Payoff is a relatively small P2P lending platform that is designed specifically to help individuals pay off their credit card debts by providing loans to help them consolidate their debts.

Debt consolidation is one of the three best ways to pay off high-interest debts, like credit card debts.

Payoff has a feature that enables investors to see a potential borrower’s creditworthiness before they lend them money.

Investors can fund loans ranging from $5,000 to $40,000 and expect to have ROI ranging from 5% to 25%.


  • It has features that enables investors see a potential borrower’s creditworthiness
  • Limited risk
  • Potentially high return on investments


  • Recently, there are restrictions on investing
  • Borrowers are not charged a prepayment penalty or late payment fee


Investing using this P2P involves lending to small and medium-sized businesses as well. When businesses take a loan through Funding Circle, they pay a one-off completion fee.

To invest with Funding Circle, investors must transfer $25,000 to an investment account through the platform.

Capital as little as $500 increment is allocated by investing using either auto-invest tool or through manual selection. Loans terms are up to five years and are paid in monthly installments.

Funding Circle investors receive between 4.5% and 6.5% returns on their investment on average. Investors pay a 1% service fee.


  • High yields returns
  • 1% service fee


  • Low returns for investors who choose to invest more conservatively
  • Minimal repercussions for borrowers who default


This platform provides loans for consumers in 47 states. Its process is heavily streamlined and it makes sure to connect the right investor to the right borrower.

Investors on the platform can invest anywhere from $2,000 to $50,000 with an expected ROI ranging from 5% to 30%.

Borrowers’ minimum credit scores are vetted to be up to 600 and have a low debt-to-income ratio, not more than 36%.

This platform requires investors to purchase whole loans. However, the platform also takes some of the risks of the loan, which provides safeguards for investors.


  • Low default risk
  • The platform takes on some of the risk of loan
  • Available in 47 states


  • Investors are required to purchase whole loans and not partial.


This p2p platform provides a cash advance app, where borrowers state how much they want to borrow, the date of their paycheck, and how much they are willing to pay back the investor, as a form of tip or interest, who loans the cash.

Online lenders search the platform and choose which loan requests they are willing to fund. The higher the score is, the lower the risk is for an investor.

This is best for investors who feel they are rendering service for humanity, hence, ready to risk it because the interest rate depends on what the borrower is willing to offer which may not appease investors.

However, investors are provided with options to see whose interest appeals to them before investing. Here, borrowers also try to raise their interest rate to be able to meet up with investors’ expectations, so they could be funded with the money.


  • There is no  need for traditional financial institution
  • You choose whose interest rate is suitable to you
  • It is structured


  • There is  a high risk, if the borrower scorer is lower
  • There is no traditional interest rate
  • There is no penalty in the case of a borrower who pays late


When you invest your money in this platform, it becomes a loan to borrow a person or a business owner who repays with interest. These repayments are reinvested so that your money is compounded with interests.

As investments are made, money automatically goes into a queue to get matched with new loans as well as existing loans of investors who wish to release their investment.

When an investment is made using this platform, the money is funded to a borrower who pays interest and the investor’s interest is reinvested for him to make more yields. The investor has the choice to choose if he wants to invest in a particular investment. However, the interest will be reinvested.


  • High interest rate between 3% to5%
  • Minimum investment
  • It protect investors against borrowers who fail to repay by boasting an effective provision fund
  • Instant access to your investment is not guaranteed and a fee is attached before it get released.


Peer-to-peer lenders with this article are provided with competitive choices of different websites they can invest their money and know exactly what you will be in for, in terms of the yields and the risk which are all parts of an investment deal.

Although, p2p lending platforms provide investors with investment options to pick from and their level of risks involved.

Investing in p2p gives you an opportunity to spread your money across different investments and make interest out of it while managing your investment options.

Any of the above peer-to-peer lending websites for investors place you within your range as an investor on what to invest while helping humanity through growing small businesses and paying off debts yet, making some returns out of this service or investment.

It is also advisable that investors consider their options before investing.

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