David Beard

Expertly compared by David Beard

Products Updated October 19, 2021

Peer to Peer Loans

If you are looking for a peer-to-peer loan then we can help. View and compare our selection of P2P lenders from our selection below and see who is offering the cheapest deals and loan rates on the market. These types of loans offer an alternative from typical high street lenders and are available for bad credit applicants.

The actual rate you're offered will depend on your personal circumstances – including your credit rating.

4 providers expertly compared:

Leap

Loan Amount
£100 - £15,000

Annual Percentage Rate (APR)
4%

Loan Term
1 - 6 years

Loan Type
Peer-to-Peer Loan

Status
Homeowners & Tenants

Rated 4.8/ 5

All credit types

Your monthly payment will be:

£169.35

Interest on this loan will be:

£18,805

Annual Percentage Rate (APR):

4%

Total repaid will be:

£50,805

Leap's aim is to help streamline your debts with a low-interest peer-to-peer loan, so you’ll have more money to do more of what you love doing.

4 providers expertly compared:

Zopa

Why?

This provider is our Expert’s Choice in its category as it won tops marks for the following.

  • TRUST
  • VALUE
  • EXPERTISE & KNOWLEDGE
  • CUSTOMER SERVICE

Learn more about how we review and assess the providers here on Lending Expert.

Loan Amount
£1,000 - £25,000

Annual Percentage Rate (APR)
9.9%

Loan Term
1 - 7 years

Loan Type
Peer to Peer Lender

Status
Homeowners & Tenants

Rated 5.0/ 5

Good Credit

Your monthly payment will be:

£169.35

Interest on this loan will be:

£18,805

Annual Percentage Rate (APR):

9.9%

Total repaid will be:

£50,805

Zopa directly match people looking for a personal loan with people looking to invest. It's their way of making money simple and fair. Since 2005 Zopa have approved a staggering £2.92 billion in loans.

Representative Example

4 providers expertly compared:

My Community Finance

Loan Amount
£1,500 - £25,000

Annual Percentage Rate (APR)
23.9%

Loan Term
1 - 5 years

Loan Type
Unsecured Personal Loan

Status
Homeowners & Tenants

Rated 4.5/ 5

All credit types

Your monthly payment will be:

£169.35

Interest on this loan will be:

£18,805

Annual Percentage Rate (APR):

23.9%

Total repaid will be:

£50,805

My Community Finance have taken inspiration from the past to build a better financial future - where community matters. They’re a network of Credit Unions and ethical lenders. My Community Finance looks to give everyone access to fairly priced financial products.

Representative Example

4 providers expertly compared:

Lendable

Loan Amount
£1,000 - £25,000

Annual Percentage Rate (APR)
27.9%

Loan Term
1 - 5 years

Loan Type
Unsecured Personal Loan

Status
Homeowners & Tenants

Rated 4.3/ 5

All credit types

Your monthly payment will be:

£169.35

Interest on this loan will be:

£18,805

Annual Percentage Rate (APR):

27.9%

Total repaid will be:

£50,805

Lenable offer fast loans at fair rates. See your rate before you apply - it won’t affect your credit score. Lendable offer a paperless application with instant quotes. You can manage your loan online, top up, repay early without a settlement fee.

Representative Example

Read our customer and visitor reviews for this product:

Rating: 4.5 / 5 with 2 votes

Good comparison

by Mandy Thomson

Good comparison service and lenders to choose from. Easy application form.

Plently of loans to choose from

by SL

These facility by Feasible.co.uk provided many solutions and gave me choice of several lenders as part of the search. Vey fast and no issues using them. Quick to phone me back also.

What are peer to peer loans and how do they work?

Peer to peer lenders

Peer to peer lenders

Peer to peer lending is basically people lending money to other people who are not friends or family. This type of lending does not go through any traditional financial institution, such as a bank, but instead uses an intermediary company such as Zopa or RateSetter that vets applicants and decides whether they are a low enough risk lending to. The majority of peer to peer lending is done as unsecured loans and the interest rates as set by the lenders in relation to the individual. Higher risk lenders attract higher interest rates, and lower risk lenders attract lower interest rates.

What’s in it for the intermediaries?

The intermediary companies that actually administer the loans are for-profit organisations who generate their revenue from the fee that is charged in order to take out the loan. They also make money from the investors in the form of a fund management fee, which is either a fixed amount or percentage of the loan amount. Operating completely online, there are also few overheads, especially as many of the processes are automated, so running the company is cheaper than for mainstream lenders.

Related: Peer to Peer Business Loans

Who can apply for a peer to peer loan?

There are really only three things that you need in order to qualify for a peer to peer loan. Firstly you will need to be able to confirm your identity, usually through a passport or driving licence, you will need evidence of your income and ability to make the repayments, in the form of pay slips and bank statements, or the equivalent of these if you have slightly different circumstances, and finally you will need a good credit history and ben able to demonstrate a good track record of repaying your debts.

What interest rates will i pay?

This will depend on a number of factors, but it will mostly be related to the amount that you borrow. If you borrow a small amount, or a large amount you will find that you will pay higher interest rates of around 8%. If you have a loan of around £5000 to £20,000 you will find that you pay between 4% and 5% depending on the term that you choose to repay the loan over. It is also worth noting that you don’t generally have early repayment fees.

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