Best Peer-to-Peer Lending Companies of 2024

If you’re in need of a bit of extra money to make a change in your life, personal loans might be worth exploring. Whether you’re looking to start your own small business and need some seed money or are just looking to compare a few different loans with lower interest rates than your existing debts as a form of debt consolidation, there are plenty of reasons for borrowers to look into lenders who can help them on their personal finance journey.
Rather than going through a traditional bank or traditional lenders, it may make sense to look into personal loans instead. Nowadays, there are dozens of lending platforms catering to consumers who are looking for a straightforward application process and the opportunity to lower their monthly payments to increase cash flow. One of the most popular types of loans out there is actually a subsection of unsecured personal loans known as social lending, lending circles or peer-to-peer (P2P) lending. These types of loans are generally unsecured and allow consumers to connect with groups of individual investors who help fund the loan request.
Of course, with an increased interest in P2P lending has come an increase in companies and online platforms acting as the middleman between borrowers and peer lenders. From lending sites like Lending Club and Prosper to newer platforms like Peerform, Upstart, and Funding Circle, it’s easier than ever to find and apply for P2P loans online — but it can be difficult to figure out the pros and cons of each option. Read on for an overview of each of these lenders so that you can better determine which option is best suited to your needs.

Overview of the best peer-to-peer lending companies

P2P Lender
Best For
LendingClub
Versatile loans under $40,000
Prosper
Flexible, fixed-term options and next-day funding
Peerform
Lowest interest rates and transparent fees
Upstart
Borrowers who want an increased chance at prime credit and fees calculated on the latest technology
Funding Circle
Small business owners in need of working capital
Happy Money
Individuals looking to tackle consumer debt

Best peer-to-peer lending companies

LendingClub

One of the first peer-to-peer lenders to hit the market, LendingClub has been around for over a decade, and has loaned to over four million customers. Their loans can be used for various purposes, with auto refinancing, small business loans, and general personal loans being the most common amongst borrowers.
One of LendingClub’s most beneficial features is how quickly borrowers can qualify for a loan. The application process can be completed via smartphone or online and gets you qualified and connected to an investor willing to loan you money in minimal time.
APR on loans ranges from 9.57% to 35.99% and loans max out at $40,000. You won’t need to worry about prepayment for any portion of your loan or application fees either with LendingClub.
The minimum amount you can borrow is $1,000, making LendingClub a versatile loan option. Whether you’re interested in improving your home, covering medical expenses, or paying for a much-needed vacation, chances are high that LendingClub has a loan that meets your needs.

Prosper

One of the major distinguishing characteristics of Prosper compared to some of the other peer-to-peer lending platforms online is the ability to receive your money in as little as one day. Especially if you’re applying for a personal loan because of an emergency, the expediency offered by Prosper can be a major contributing factor to your choice between different P2P lenders.
Prosper offers borrowers a loan for a minimum of $2,000 and a maximum of $40,000. This makes them a great choice for large purchases, medical bills, and other emergencies. APR ranges from 6.99% to 35.99%.
Prosper gives you the power to choose specific features of your loan. For starters, you can select a 3- or 5-year loan type based on your ideal payoff date. Plus, unlike credit cards, you won’t need to worry about interest payments changing since you’ll be locked in with a fixed interest rate.
Depending on your application, you may have to pay an origination fee in addition to the amount of your loan and interest. As such, it’s important to run through Prosper’s online calculators ahead of time to get an estimate of what additional fees you may be charged when taking out a loan.

Peerform

Peerform offers a quick and free application process. Peerform is quite transparent about its fees and makes it easy to estimate what sorts of fees you may be charged, which can be a major boon when you’re taking on additional debt.
For example, Peerform grades each applicant on a sliding scale from AAA to DDD. If you’re in the range of AAA to A, you’ll qualify for the best rates and fees, while applicants in the B, C, and D range will receive worse rates. APR ranges from 5.99% to 29.99% depending on your Peerform grade, while origination fees are between 1% and 5% of your total loan.
While Peerform offers low-interest rates and a transparent fee structure, it’s worth noting that your loan amount is much more limited with Peerform than with other online lending platforms. The maximum loan amount you can get from Peerform is $25,000, but you’re required to take out a loan of at least $4,000, so there’s less flexibility in the sorts of things you can use your loan for.
That said, Peerform is an ideal option if you’re looking for help with home improvement projects, moving costs, or debt consolidation.

Upstart

Like Prosper, Upstart offers most borrowers funding in about one day, making it a great option if you need a personal loan fast.
One feature that distinguishes Upstart from other P2P lending companies is that they use artificial intelligence tools to expand your access to better rates based on more than just your credit score. This ultimately results in Upstart approving about a quarter more of borrowers’ applications than other lenders, which can be a big deal if your credit has a few bad marks.
Upstart offers APR ranging from 6.4% - 35.99%, depending on your credit rating and income, among other eligibility factors. With a maximum loan amount of $50,000, you can take out a larger loan with Upstart than some of the other P2P platforms listed here, which can wind up being a major deciding factor in your decision.
Upstart prides itself on being on the cutting edge of lending and personal finance technology. As such, they’re constantly implementing new features that offer lenders the opportunity to get the most out of their lives financially.

Funding Circle

Unlike other lenders on this list, Funding Circle is explicitly focused on offering small business loans and working capital to entrepreneurs looking to start their own businesses or take a new one to the next level.
Funding Circle offers a few different funding options to entrepreneurs. Funding Circle has helped close to 100,000 business owners over the past decade, from SBA loans to lines of credit or cash advances.
The amount of capital you can apply to receive from Funding Circle ranges from $25,000 to $5.5 million, depending on your loan type. The lowest APR rate you’ll receive with excellent credit is 7.49%.
One thing to note is that your company needs to have been in business for at least three years to qualify for working capital from Funding Circle. In addition, Funding Circle requires collateral.

Happy Money (previously Payoff)

Just as Funding Circle is specifically interested in helping small business owners, Happy Money is targeted at helping consumers pay off debt.
Happy Money has a few specific structures that make it ideal for paying off your credit cards. Beyond offering you one manageable fixed payment each month, Happy Money also doesn’t charge late fees on payments made past your deadline. This helps you boost your FICO score while getting out of debt and saving more money.
Happy Money loans are offered in amounts ranging from $5,000 to $40,000, and APR on loans ranges from 11.72% and 24.67%. Origination fees range from 0% to 5% of your overall loan.

Summary of P2P lending companies

P2P Lender
Loan amount
Annual Percentage Rate (APR)
LendingClub
$1,000 to $40,000
9.57% to 35.99%
Prosper
$2,000 to $40,000
6.99% to 35.99%
Peerform
$4,000 to $25,000
6.50% to 35.99%
Upstart
$1,000 to $50,000
6.4% - 35.99%
Funding Circle
$25,000 to $5.5 million
Starting from 7.49%
Happy Money
$5,000 to $40,000
11.72% and 24.67%

FAQs

Do rate estimates impact your credit score?
Most of the P2P lenders on this list offer free estimates based on the information you supply regarding your annual income and other financial details, and these estimates won’t impact your [credit score](https://joywallet.com/fico-vs-vantagescore-what-is-a-credit-score). That being said, in order to fully qualify for a P2P loan from any company, your credit will need to be run which can negatively hurt your credit score for a few months.
Are P2P loans reliable?
As a borrower, yes, P2P loans can be a straightforward way to receive financial assistance in the form of an unsecured personal loan. That being said, if you’re interested in using P2P loans as an investor, your mileage may vary in terms of how reliable your borrower is at paying you back. Ultimately, if you’re investing in P2P loans and lending money to others using any of these platforms, it’s a good idea to diversify your assets and really understand a borrower profile before agreeing to lend your money to them, just in case they do wind up defaulting.

Why you should (or shouldn’t) use peer-to-peer lenders?

Depending on your financial situation, there are some definite pros and cons to peer-to-peer lending websites as opposed to traditional lenders like banks.
For starters, interest rates are generally significantly lower through P2P lenders than through banks and are especially lower compared to the high APR on most credit cards. This can be great if you’re struggling with the repayment of your debt since paying off older debts by consolidating multiple credit lines into a single personal loan with lower interest. As such, a P2P loan can ultimately allow you to take control of your finances and boost your credit score much quicker than paying each debt off individually using the avalanche or snowball method.
Another benefit of using a P2P lender is that, unlike some small business loans or other lending programs, eligibility requirements may be a little laxer. If you’re worried about your FICO score, lack of credit history, or creditworthiness, you may fare better with a P2P lending company than a traditional bank.
Even considering all of these benefits, there are some situations when it doesn’t make sense to take out a loan from a P2P lending platform. For example, if the origination fee for the peer-to-peer loan is high or negatively impacts the duration of your loan repayment, it may make less sense to take out a personal loan from a P2P lender.
Beyond considering origination fees, it’s also important to look into the loan terms to see if any other clauses could limit the way you pay back the loan. For example, some lenders may have rules against paying down your loan under certain circumstances, which could result in you paying more in interest even if you have the cash on hand to pay down your loan faster.

The bottom line

Ultimately, whether or not you take out a personal loan depends on various factors. While some of these will be unique to your situation (such as your credit score or the kind of interest rate you’re looking to get), other aspects that might impact your decision include what you’re planning on using the money for or how much you’re looking to take out via loan.
Researching each lender is the first step to making the right decision about taking out a personal loan. The above overview and tables should help you narrow your choices down to two or three lenders who best match your unique circumstances. By planning appropriately and weighing the pros and cons, you’re bound to make the right choice of P2P lenders and set your finances on the path to success.

Joy Wallet is an independent publisher and comparison service, not an investment advisor, financial advisor, loan broker, insurance producer, or insurance broker. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. They are not intended to provide investment advice. Joy Wallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. We encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Featured estimates are based on past market performance, and past performance is not a guarantee of future performance.

Our site doesn’t feature every company or financial product available on the market. We are compensated by our partners, which may influence which products we review and write about (and where those products appear on our site), but it in no way affects our recommendations or advice. Our editorials are grounded on independent research. Our partners cannot pay us to guarantee favorable reviews of their products or services.

We value your privacy. We work with trusted partners to provide relevant advertising based on information about your use of Joy Wallet’s and third-party websites and applications. This includes, but is not limited to, sharing information about your web browsing activities with Meta (Facebook) and Google. All of the web browsing information that is shared is anonymized. To learn more, click on our Privacy Policy link.

Brent Ervin-Eickhoff is a Chicago-based writer, stage director, and filmmaker with a background in digital marketing and content creation. In addition to Joy Wallet, Brent has written for Complex, Volkswagen, HowlRound, Picture this Post, and Third Coast Review, among others. He currently serves as the Associate Director of Marketing for Content Creation at Court Theatre at the University of Chicago. Brent graduated from Ball State University with Academic Honors in Writing.

Share this article

Find Joy In Your Wallet