Peer-to-Peer Lending is a way for individuals to borrow and lend money directly to each other without going through traditional banks. In this system, borrowers can request loans, while lenders can choose to fund these loans, often at better interest rates than banks offer. This creates a more personal connection between the two parties and can help people access funds more easily. The process usually takes place on online platforms that connect borrowers and lenders. These platforms, like LendingClub or Prosper, assess the creditworthiness of borrowers and facilitate the transaction, making it a convenient option for both sides.