Analysis of personal loans provided by P2P platforms and commercial banks

Abstract

The article analyses borrowing opportunities of households in the consumer credit market. The analysis is performed by comparing p2p platforms and commercial banks offered alternatives to borrowing in Lithuania and abroad. The analysis focuses on the cost of consumer credit and the credibility of the financial institution. After literature research, the theoretical aspects of commercial banks and p2p platforms are discussed – appearance, activities, functions, borrowing processes, etc. In the following paragraphs, consumer loans are analysed, considering the lenders of Lithuania market and foreign consumer credits. Through a multi–criteria assessment, the credibility of commercial banks operating in Lithuania and the UK is evaluated. In the end of an article, the conclusions are presented with the most financially advantageous alternatives for households, from where to borrow money, what are the main differences in borrowing alternatives, and which commercial bank is the most reliable.