What is the primary feature of peer-to-peer lending?

The primary feature of peer-to-peer lending is that it facilitates borrowing and lending directly between individuals. This system bypasses traditional financial institutions, such as banks, which usually act as intermediaries in financial transactions. With peer-to-peer lending platforms, individuals can connect directly to lend money to other individuals who are seeking loans, often resulting in more favorable terms for both parties. This direct connection can lead to lower interest rates for borrowers and a potentially higher return for lenders, compared to what they might receive from a traditional savings account or investment.

The emphasis on personal transactions in peer-to-peer lending makes it a flexible option for those looking for alternatives to conventional bank loans. The ability to negotiate terms and find personalized lending opportunities is a significant advantage over traditional lending processes. Thus, the essence of peer-to-peer lending is its direct nature, enabling individuals to manage their own borrowing and lending without bank involvement.