Overall, Prosper is the best P2P player in the game, with a wide range of lending and investing options. New players like SoLo Funds offer a unique approach to borrowers, with no fees and optional tips. And Kiva is a hybrid lender with a mix of lending and crowdfunding that offers 0% loans to small businesses.
In the past, if you wanted a loan to pay off your car or credit card, you would go to a bank or credit union, sit down with a loan officer, and wait for them to say yes or no to "crack the numbers."
But now peer-to-peer (P2P) lending has emerged, offering borrowers credit directly from individuals -- and typically offering better terms for those without a great credit profile. Borrowers can access up to $50,000 (or more) from lenders, with fixed repayment and reasonable interest rates. Investors can also become lenders on P2P platforms and earn interest on loans as a passive form of investment income.
Let's break down some of the best peer-to-peer lending sites for both borrowers and investors so you can determine which option is best for you.
What's coming up:
Overview of the best peer to peer lending websites
- Best for those with high credit:Thrive
- Best for crypto-backed loans:BlockFi
- Best for young people:Upstart
- The best alternative for a payday loan:Solo-Fonds
- Best for Small Businesses:FundingCircle
- Best for first time borrowers:Kiva
Prosper: Best for those with good credit
- APR:6,99 % bis 35,99 %
- Expression: 2 to 5 years
Thriveis the OG peer-to-peer lender on the market. It was founded in 2005 as the very first peer-to-peer lending marketplace in the United States. According to their website, they have coordinated over $22 billion in loans.
Borrow with Prosper
If you are a borrower, you can get personal loans up to $50,000 with a fixed interest rate and a fixed term of two to five years. Your monthly rate is fixed for the life of the loan. There are also no prepayment penalties, so if you can pay it early, you won't be penalized.
You can instantly see what your interest rate would be and once approved, the money will be deposited straight into your bank account.
Invest with Prosper
As an investor, you have many loan options to choose from. There are seven different "Risk" categories to choose from, each with their own estimated return and risk level. Here's a look at the risk levels and estimated potential lossThrive:
- AA – 0,00 – 1,99 %
- A – 2,00 – 3,99 %
- B – 4,00 – 5,99 %
- C – 6,00 – 8,99 %
- D – 9,00 – 11,99 %
- E – 12.00 – 14.99%
- HR (high risk) - ≥ 15.00%
As you can see, the lower the letter, the greater the risk of default and the higher the estimated potential loss. With a minimum investment of just $25, you can spread your risk across all seven categories to add some balance to your portfolio.
The borrowers you lend to also rank above the US average in terms of their FICO score and average annual income.
Learn more about ProsperorRead our full review.
BlockFi: Best for crypto-backed lending
- APR: 4,5 % – 9,75 %
- Expression: 12 Fun
BlockFiis a popular crypto lending platform that offers crypto-backed loans to borrowers and pays interest to lenders. BlockFi offers instant loans and requires no credit check for borrowers. All loans are collateralized, meaning borrowers need to lock their cryptos in order to borrow them.
Borrowing with BlockFi
If you are a borrower, you can get a crypto loan for up to 50% of the value of your crypto, with rates ranging from 4.5% to 9.75% APR depending on the amount of collateral. Payments are made monthly and are fixed for the life of the loan.
The interest rates depend on the amount of collateral deposited and the loan-to-value (LTV) of the entire loan. A processing fee of 2% is charged on all loans.
- Kreditzins – 9.75% (50% LTV)
- Kreditzins -7.9% (35% LTV)
- Kreditzins – 4.5% (20% LTV)
Bitcoin (BTC), Ether (ETH), Paxos Gold (PAXG) or Litecoin (LTC) can be used as collateral for the loan and can be liquidated if the LTV exceeds the loan's original LTV.
Invest with BlockFi
BlockFi offers interest accounts for users who deposit crypto. Funds are used for crypto lending, and interest is paid on the deposited native cryptos. Interest rates vary by cryptocurrency, ranging from 0.10% APY to 7.50% APY. Stablecoins (like USDC) pay out the highest rates.
Crypto interest accounts are not available to US investors like BlockFi wassued by the SECfor violating securities laws.
Learn more about BlockFiorRead our full review.
BlockFi Bankruptcy Notice-On November 10, 2022, BlockFi announced that it had to suspend payouts from its platform due to the FTX liquidity crisis. Therefore, consumers should not use the BlockFi platform. On November 28, 2022, BlockFi officially filed for bankruptcy.
Upstart: Best for young people
- APR: 5,6 % – 35,99 %
- Expression: 3 or 5 years
Upstartis an innovative peer-to-peer lending company founded by three former Google employees. In addition to being a P2P lending platform, they have also developed intuitive software for banks and financial institutions.
What is unique aboutUpstartis how they determine risk. While most lenders look at a lender's FICO score, Upstart has developed a system that uses AI/ML (Artificial Intelligence/Machine Learning) to assess a borrower's risk. This has resulted in significantly lower loss rates than some of its peers. Combine that with an excellent TrustPilot review and this company is sure to be making waves in the P2P market.
Borrow with Upstart
Borrowers can get loans from $1,000 up to $50,000 with interest rates as low as 5.6%. The term is either three or five years, but there is no prepayment penalty.
Using their AI/ML technology, Upstart not only looks at your FICO score and credit history in years, but also considers your education, field of study, and work history before determining your creditworthiness. Their website claims their borrowers save an estimated 43% compared to other credit card rates.
Invest with Upstart
Investing with Upstart is also quite intuitive. Unlike other P2P platforms, you can set up a self-directed IRA with the investments from peer-to-peer lending. This is a unique feature that should attract many investors.
As with other platforms, you can set up automated investing by choosing a specific strategy and depositing money automatically.
Upstart claims to have tripled its growth over the past three years, largely due to its proprietary underwriting model. Therefore, it might be worth trying to consider this option.
Learn more about UpstartorRead our Upstart review.
SoLo Funds: Best suited for a payday loan alternative
- APR: 0% (tip optional)
- Expression: Up to 35 days
Solo-Fondsis a peer-to-peer platform that acts as a short-term lender, similar to payday loans. With terms of only up to 35 days, loans have to be repaid within a tight time frame. Instead of charging fees, borrowers can leave an optional tip instead.
SoLo Funds is an affordable option for clients who are in need and need an advance on payday, but incur hefty fees if loans are not repaid within 35 days. Users will have to pay a 10% penalty plus a third-party transaction fee if they are late.
Borrowing with SoLo Funds
Borrowers can borrow up to $575 for a maximum of 35 days. Loans do not charge fees but allow borrowers to select an optional tip amount for lenders.
Loan applications take minutes, and while most loans are issued within days, some can be approved instantly and offer same-day financing with money transfers to borrowers in hours.
Loans must be repaid in full within 35 days or there is a 10% penalty plus other transaction fees. There is no way to extend the loan.
Investing with SoLo Funds
Lending is fairly straightforward, with a simple sign-up process and no pre-qualifications required. Since the loans are for smaller amounts (up to $575), there are no minimum amounts required for lending.
SoLo Funds has a marketplace for loan requests from borrowers with details provided for each. Each loan request shows the amount required plus the tip given by the borrower for the loan. Each borrower also has a SoLo score on a scale of 40 to 99, with higher scores indicating greater "worthiness" for repaying a loan. Loans can default and, if necessary, be collected by third parties. There is a risk of total loss when investing in SoLo Funds, although the platform offers insurance against loss for a fee.
FundingCircle: Best for small businesses
- APR: 11,29 % bis 30,12 %
- Expression: 6 months to 7 years
FundingCircleIsa peer-to-peer platform for small businesses. The company was founded with the aim of helping small business owners achieve their dreams by providing them with the funds needed to grow.
So far they have helped 130,000 small businesses around the world through mutual funds from 71,000 investors around the world. FundingCircle is different in that it focuses on larger dollar amounts for companies ready for massive growth. They also have an excellent TrustPilot rating.
Lending with FundingCircle
As a borrower, the minimum loan is $25,000 and can go up to $500,000. Rates are as low as 5.99% and terms can range from six months to seven years. There are no prepayment penalties and you can use the money however you see fit – as long as it is dedicated to your business.
You pay a processing fee, but unlike other small business loans, funding is much faster (you can be fully funded in as little as one business day).
Invest with FundingCircle
As an investor, you have to shell out at least $25,000. If that didn't put you out of the race, then read on.
According to FundingCircle, you will "invest in American small businesses (not startups) that have an operating history, cash flow and a strategic growth plan." While the risk is still there, fund established companies looking for additional growth.
You can manage your investments and select individual loans or set up an automated strategy, similar toimprovement, where you define your investment criteria and receive a portfolio put together for you.
Kiva: Best for first-time borrowers
- APR: 0%
- Expression: Up to 3 years
If you want to do something good in the world, P2P will give you a whole different experienceKiva.Kiva is a San Francisco-based nonprofit that helps people around the world finance their businesses with zero interest. They were founded in 2005 with the "mission to connect people through lending to alleviate poverty".
Borrowing with Kiva
If you want to borrow money to grow your business, you can get up to $15,000 with no interest. Right, not interested. After you've applied and prequalified, you'll have the opportunity to invite friends and family to lend you money.
At the same time, you can make your loan public by making your loan visible to over 1.6 million people around the world. Like Kickstarter, you tell a story about yourself and your business and why you need the money. People can then contribute to your cause until your loan is 100% funded. After that, you can use the funds for business purposes and work on repaying your loan for terms of up to three years.
Invest with Kiva
As a lender, you can lend money to people in a variety of categories, including loans for single parents, people in conflict zones, or businesses focused on food or health. Kiva has set up various filters so you can narrow down exactly the type of person and company you want to lend your money to. You can borrow as little as $25 and remember you get nothing in return but satisfaction - there is no interest.
You can choose from a variety of credits and add them to your "shopping cart" and then check out with one simple process. You will then receive payments over time based on the borrower's chosen repayment plan and their ability to repay. Funds will be credited directly back to your Kiva account for you to use again or withdraw. Of course, lending comes with risks, but Kiva claims to have a 96% payback rate on their loans. Remember, you're not doing this as an investment, you're doing this to help someone else.
What is peer to peer lending?
As the name suggests, peer-to-peer lending is about private individuals lending to other people. The system goes against the traditional model of banks and credit unions providing financial services because it eliminates the middleman.
While peer-to-peer lending has seen a surge in users over the past decade, some P2P lending companies have shut down their services in recent years, including StreetShares, Peerform, and LendingClub.
How does peer-to-peer lending work?
Peer-to-peer lending has many similarities to traditional lending:
- You fill out an application with your financial and personal information, including the amount of the loan, tax return, and government-issued ID.
- The lender reviews your application before posting it on the investor website.
- Investors can play the role of a loan officer, reviewing a list of applications and deciding where they might want to contribute.
- The platform indicates how risky the loan is and what the potential return is.
- Funding takes between one day and two weeks.
Is peer-to-peer lending safe?
Nobody would say that peer to peer lending is 100% safe. No form of investment is. Many of the best peer-to-peer lending websites screen borrowers and investors to mitigate risk. The verification process helps eliminate untrustworthy candidates, allowing borrowers to get their loan and investors to earn interest.
Continue reading:Should You Invest in Peer to Peer Loans?
Pros and cons of P2P lending for investors
- An attractive alternative to more traditional investments —You can round out your portfolio, which may consist solely of stocks, bonds, and mutual funds. Some platforms merge private and public stocks, allowing you to do all your investments in one place.
- Most lending platforms allow you to select multiple loans at once —The variant allows you to reduce your risk while generating potentially higher returns than with a CD or savings account.
- Feel comfortable with your contribution —With sites like Kiva, you know your money is going to a humanitarian cause.
- default risk —When you lend money to individuals, you risk their insolvency. Peer-to-peer lending sites do not come with FDIC insurance like a CD or savings account.
- P2P lending lacks the liquidity of stocks or bonds –Most loans have a term of three to five years, so you will have to wait until then to withdraw money.
- inequality —Some platforms, like Funding Circle, only allow access toaccredited investors, so not everyone has equal access to credit opportunities.
Pros and cons of P2P lending for borrowers
- You can bypass the traditional bureaucracy of brick-and-mortar banks –Instead of standing in line and dealing with a loan officer, you have access to a fast online experience. Because online platforms don't have to worry about physical overheads, many borrowers can offer competitive interest rates.
- P2P lending tends not to be as strict as banks or credit unions –The relaxed approach makes it easier to secure a loan if you have a fair or bad credit history.
- Often no prepayment penalty —In many cases, you do not have to worry about prepayment penalties.
- Borrowers face more hurdles when they have low credit ratings –Interest rates can go as high as 36% for those with lower ratings, while some platforms won’t offer financial services to anyone with a credit score below 630.
- Possibly high fees —Some sites have origination fees of 6%.
- impersonal —If you want the old-fashioned personal lending experience, peer-to-peer lending is not for you. You have no chance to sit down with your lender and clarify the terms.
- Credit Caps Around $50,000 —If you need more money, you'll likely need to go to a bank or credit union.
Peer-to-peer lending is a great option for borrowers with less than excellent credit who want access to capital on reasonable terms and interest rates. P2P lending is ideal for small businesses and individuals looking for a personal loan that doesn't require a mountain of paperwork and is funded quickly (usually within a few days).
But not all P2P lending platforms work the same, and some can charge steep processing fees and interest rates. Others also require high minimum loan amounts, making them less accessible to some borrowers.
Investors can earn decent returns with P2P lending, but there is also the risk of default and the hassle of going through the occasional collection agency. Finding a solid platform with detailed risk mitigation strategies (e.g., borrower scores) and default insurance can help allay these concerns, but it can eat away at your profits.
While peer-to-peer lending isn't seeing the massive growth it was a few years ago, it's still a solid option for borrowers and investors alike.
- Everything you need to know about P2P insurance
- NSR Invest: A new way to invest in peer-to-peer lending
Can you get a peer-to-peer loan with bad credit? Peer-to-peer loans can be an option for bad-credit borrowers (those with FICO scores of 629 or below), but they may have higher interest rates.What is the minimum credit score for peer-to-peer lending? ›
Can you get a peer-to-peer loan with bad credit? Peer-to-peer loans can be an option for bad-credit borrowers (those with FICO scores of 629 or below), but they may have higher interest rates.Who is the biggest peer-to-peer lender? ›
LendingClub is a peer-to-peer lender and the largest online lending platform for personal loans. The platform issues loans in every state except Iowa and has worked with over 3 million customers and funded more than $55 billion in loans since its founding in 2007.Do you need good credit for P2P lending? ›
P2P Credit offers personal loan access to borrowers with bad credit. Traditional banks often deny loan applications from borrowers with credit scores less than 680. However, with peer to peer lending, you are likely still eligible to get a loan with a fair interest rate – even if you have bad credit.Can you make good money with peer-to-peer lending? ›
Peer-to-peer lending can provide higher returns than many savings accounts or traditional investing accounts. For example, Prosper's peer-to-peer lending platform reports that it has provided average historical returns of 3.5% to 7.5%.What is LendingClub minimum credit score? ›
The minimum credit score needed for a LendingClub loan is 600, the company says. However, the average qualified borrower's credit score is 700.What is the minimum credit score for most lenders? ›
The minimum credit score needed for most mortgages is typically around 620. However, government-backed mortgages like Federal Housing Administration (FHA) loans typically have lower credit requirements than conventional fixed-rate loans and adjustable rate mortgages (ARMs).Are Kiva loans legit? ›
Kiva is a legitimate lending option. It received 4.6 out of 5 stars rating based on 198 Kiva loan reviews through Trustpilot. Kiva is listed as a 501(c)3 U.S. nonprofit. It was founded in 2005 and is based in San Francisco.Why is TrustBuddy so famous? ›
With over 200 0000 members, TrustBuddy is the biggest Peer-to-Peer provider of short term loans in the world.What is the limit for peer-to-peer lending? ›
The amount lent can be a minimum amount of Rs 500-750. The maximum amount per lender is capped (in the aggregate) across all P2P platforms at Rs 50,00,000. However, if a lender lends above Rs 10,00,000, a certificate from a practising Chartered Accountant certifying minimum net-worth of Rs 50,00,000.
- Open an account with a P2P lender and pay some money in by debit card or direct transfer.
- Set the interest rate you'd like to receive or agree one of the rates that's on offer.
- Lend an amount of money for a fixed period of time – for example, three or five years.
While some peer-to-peer loans are secured, they are most often unsecured loans. This means the borrower isn't borrowing against any collateral, and if they can't pay their loan the lender loses their money. Whatever money the borrower hasn't paid back will be lost.How to choose P2P lending platform? ›
Transparency. The best peer to peer platforms are transparent about their business model and their investment numbers. They publish regular updates on the company's position and provide information on how the platform operates and makes money.Is there an app for peer-to-peer lending? ›
Try this peer-to-peer lending app if you are a business owner with good credit and looking for a quick alternative to a bank loan with longer repayment terms. Lending decisions can be made in as little as 24 hours, and funding may be available in as little as three business days.
At this time, our P2P feature is only offered with SoFi Checking and SoFi Money accounts. You cannot send money to yourself or your joint account holder. You can send money to anyone with a US-based bank account, SoFi member or not, using our no-cost peer-to-peer (P2P) feature.Why is LendingClub shutting down? ›
According to LendingClub's website, "Unfortunately, under a prospective banking framework, it is not economically practical for LendingClub to continue to offer Notes. So, we had to make the difficult decision to retire the Notes platform effective December 31, 2020."What companies will give you a loan with bad credit? ›
|Lender||APR range||Origination fee|
|Upstart||6.50% - 35.99%.||0% - 10%.|
|LendingPoint||7.99% - 35.99%.||0% - 8%.|
|Universal Credit||11.69% - 35.99%.||5.25% - 9.99%.|
|OneMain Financial||18.00% - 35.99%.||$25 to $500 or 1% to 10%.|
Fiona is a personal loan marketplace owned by MoneyLion and powered by Engine, a tool that helps consumers search for and compare financial services. Instead of directly lending money to borrowers, Fiona has lender partnerships and connects borrowers with loan options.Can you get a loan with 580 credit score? ›
With your 580 credit score, lenders will generally consider you to be a higher-risk borrower. This means to get loan approval, you're likely to need strong qualifications when it comes to income, employment, and other debts.Can you get a bank loan with a 580 credit score? ›
With a 580 credit score, you may qualify for several types of loans. Some lenders may offer auto loans or personal loans to borrowers with a 580 credit score. You may even qualify for an FHA home loan with a 580 credit score. The type of loan that is best may vary depending on what you need funds for.
What Does a 480 Credit Score Get You?
|Type of Credit||Do You Qualify?|
Prosper has an A+ rating with the Better Business Bureau, and it is BBB accredited. The company has an excellent rating on Trustpilot with a 4.7-star rating out of 5 based on more than 10,000 reviews. In 2021, the Consumer Financial Protection Bureau received 22 personal loan complaints about Prosper.What is the Kiva controversy? ›
Kiva's mission is "to expand financial access to help underserved communities thrive." They have been accused of deceptive business practices, misleading donors into believing their funds would be used for specific individuals and misrepresenting other aspects of their operations.Is Kiva risky? ›
Even if a Kiva borrower is able to repay, Kiva lenders could still lose principal due to Field Partner issues such as: Bankruptcy (the Field Partner may go out of business and be unable to collect your loan) Fraud (staff members at the Field Partner may embezzle funds)Is crowdfunding similar to traditional bank lending? ›
Unlike crowdfunding, where many people make contributions, P2P lending is based on an individual investor providing the money. Lastly, traditional lending is financing from a bank that is repaid in increments, which most are familiar with.Who bears risk in P2P lending? ›
Risks Involved in P2P Lending
Like any investment, P2P lending carries some risks. The biggest risk is the possibility of the borrower defaulting on their loan. In such a scenario, the investor may lose part or all of their investment. Other risks include fraud, platform failure, and lack of liquidity.
Quick 2 lend is a good website but it is not safe to take loan on such websites. A lot of information is hidden from you. These people charge more than the interest rate you have to pay. In such a situation, it is best that you go to your nearest bank and apply for the loan there.How long does it take to get a loan from SoLo? ›
SoLo Funds allows you to request a cash advance from its community of lenders. Approval takes a few days, which is much longer than competitors, but all fees are optional.Is 5KFunds a legit site? ›
Is 5Kfunds legit? Yes, at Financer.com we recommend 5KFunds. At Financer.com, all lenders go through a thorough research and review process.How safe is loanpad? ›
Is Loanpad a good investment? Loanpad* is one of the safest investments of any asset class available to lenders in the UK. I believe lenders are unlikely to lose money under any imaginable market conditions, with the possible exception of catastrophes along the lines of a world war.
Conventional mortgages are the most common type of mortgage. That said, conventional loans may have different requirements for a borrower's minimum credit score and debt-to-income (DTI) ratio than other loan options.How do you qualify for Binance P2P? ›
All users must have their accounts verified to trade on Binance P2P. Users may be required to make a security deposit while applying for the Binance P2P Merchant Program, depending on where they complete their account verification.What is the default rate of Alixco? ›
Over 99.5% of investments on Alixco are repaid. The default rate since inception is at a low 0.42%.What is the difference between P2P lending and crowdfunding? ›
The main difference between peer to peer lending and crowdfunding is that the former is loan based, and the latter is equity based. Returns in peer to peer lending are usually fixed rate, although in some cases a target rate is given.How does zirtue work? ›
Zirtue simplifies loans between friends, family, and trusted relationships by turning informal promises into structured agreements with an automated repayment process.How to lend money online? ›
- Learn about P2P investing. If you are new to the P2P investing world, it's worth reading up on how the industry works, what the risks are and the essentials to getting started. ...
- Set up a P2P investing account with Swaper. ...
- Start investing in loans. ...
- Track your progress.
Once you accept an offer, the investor has 48 hours to sign off. Once they do, the funds will be transferred to your bank account in up to 1 business days, depending on your bank.How long does SoFi P2P take? ›
How much time does a P2P transfer take? P2P accounts can take just a few seconds or a couple of days to move funds. Then, if the person who has money in the P2P app wants to transfer their cash to a bank account, that can also take between hours and a few days.What bank owns SoFi? ›
SoFi Lending Corp. is a wholly owned subsidiary of Respondent Social Finance, Inc.What banks use SoFi? ›
- SoFi Bank, National Association.
- EagleBank - Bethesda, MD.
- East West Bank - Pasadena, CA.
- Hills Bank and Trust Company - Hills, IA.
- MetaBank - Sioux Falls, SD.
- TriState Capital Bank - Pittsburgh, PA.
- Wells Fargo Bank, N.A. - San Francisco, CA.
Credit risk: Peer-to-peer loans are exposed to high credit risks. Many borrowers who apply for P2P loans possess low credit ratings that do not allow them to obtain a conventional loan from a bank.What are the downsides to peer-to-peer lending? ›
Disadvantages for the borrower
You may have to pay additional fees on top of the interest rate charged for the loan. You may have to pay a higher interest rate than that charged by traditional lenders if you have a poor credit rating. You may not even get a peer-to-peer loan if your financial profile is very poor.
The risk involved with peer-to-peer lending is the risk of default by the borrower, i.e., the borrower doesn't pay the interest and the principal amount. If a borrower defaults, a P2P platform can assist the lenders in recovery and file legal notice against the defaulter.What are the disadvantages of peer-to-peer lending? ›
Your capital is at risk
Whilst platforms take steps to ensure this doesn't happen, there are no guarantees – repayment of your capital plus interest is usually dependent on the borrower repaying. You should always ensure you understand the risks fully before lending any money on a P2P platform.
So, is peer-to-peer lending safe? Like any investment, it does put your capital at risk. However, given the predictability of the repayments from borrowers and other safeguards in P2P, other forms of investment are often risker.Is peer-to-peer lending secure? ›
P2P lending is an investment. This means that your capital is at risk and returns are not guaranteed - as is the case with all investment products. However, many investors - particularly experienced investors - may be willing to accept the higher risks that accompany P2P lending in search of higher target returns.Is peer lending a good idea? ›
Peer-to-peer lending, in which investors make unsecured personal loans to consumers and are often rewarded with average annual returns of 7, 9—or even 11%, might seem like a solution to disappointing returns in other areas. But peer-to-peer lending is a risky investment.What is the safest P2P? ›
- Zelle. To use Zelle, users need to create and set up an account first. ...
- PayPal. One of the most popular P2P services in the world, PayPal is ideal for personal money transfers and online payments. ...
- Venmo. ...
- Cash App by Square. ...
- Apple Pay. ...
- Samsung Pay. ...
Start with 50k to 2 lacs depending on your risk appetite and steadily build your portfolio. A long-term investment plan of at least 24 to 36 months is the best way to get good returns with P2P lending as the returns compound with time, increasing the return on investment.What is the average rate of return on a P2P loan? ›
While this is unlikely if you invest in large-cap index funds, default rates on P2P loans can be anywhere from 1-10% on average, depending on the risk levels associated with the loan. A key difference between P2P loans and the stock market is the predictability of returns.