The booming crowdfunding ecosystem is changing the financial landscape by storm. Banks no longer hold the monopoly in credit and have become an option when it comes to business loans. Shariah compliant P2P lending, in particular, offers an alternative source of funding for businesses looking to borrow money. <\/p>\n\n\n\n
P2P lending is the direct lending of money to businesses without the participation of a financial institution such as the banks as an intermediary. It connects borrowers directly with individual lenders via an online platform created by a financial tech or fintech company like Ethis.<\/p>\n\n\n\n
While P2P lending eliminates lengthy bank processes<\/a>, stringent requirements, and the role of a bank in the borrowing transaction, it does not replace the banks as a whole. Instead, it provides an alternative solution to address the financing needs of micro, small and medium enterprises and serves the \u201cunbanked<\/a>\u201d. <\/p>\n\n\n\n As with the banking sector that offers both conventional and Islamic products, so is the case with P2P lending. Let\u2019s dip into shariah-compliant P2P lending. <\/p>\n\n\n\n