A peer-to-peer loan is borrowing money from another person or group of people, rather than a traditional lender like a bank or building society. You can find peer-to-peer lenders on dedicated websites. Interest rates vary and can be affected by your credit score, but peer-to-peer lending can sometimes offer lower rates compared to traditional lenders.
Other than that, peer-to-peer loans work in a similar way to standard personal loans. You’ll repay the loan over an agreed period and at a set interest rate. If you miss or make late repayments, you can face extra charges.