Peer-to-peer Lending In Brazil

The concept of peer-to-peer lending ("P2P"), that first evolved in the United Kingdom and United States, is currently a fashionable topic in jurisdictions like Brazil where consumer needs and spending are growing and strict financial regulations apply. P2P is in fact seen as an inclusive alternative providing individual consumers with cheap and debureaucratized credit.

Basically, individual potential lenders and borrowers meet through an online P2P platform, aiming to negotiate and formalize low-ticket P2P loan transactions, which usually would not be feasible within the traditional financial system or are out of the sight of big financial groups.

Technology has worldwide transformed online platforms created to support the various types of business and their underlying relationships, changing significantly the ties between players and the behaviour of businesses and people. In a P2P structure, the challenge of lawyers is to formalize the relevant