What is a peer-to-peer loan?

Question

• A loan form one entity electronically matched to another entity without a financial institution in the middle.
• A short-term loan at high interest rates initiated by a worker who needs cash immediately.
• A loan given without review of the borrower’s credit report or credit score.
• A type of loan where the title to an asset is used as collateral.

Answer 1

The correct answer is: A loan form one entity electronically matched to another entity without a financial institution in the middle.