Everyone has his day and some days last longer than others.

Sir Winston Churchill

A good cause

Peer to peer lending

Monday early morning , September 28, 2009.

I picked this tip from Tal Pinchevsky at bigThink

It’s a great way to get a loan, I used to get money from my relatives this way. It’s very simple. Let’s say you need a loan, instead of borrowing from your credit card at 15%, you split the interest difference half ways with a relative that has a deposit at 3%. So you and him end up winners, you get a cheaper loan at 9% (15% + 3% =18% / 2) while your uncle gets a 9% instead of the measly 3% offered by the bank.

Prosper.com and LendingClub.com offer the Internet revised version, where strangers bid for the interest on your loan.

According to the Prosper.com description: Borrowers with good credit (640+) post a loan listing and lenders invest $25 or more each towards your loan. They can bid your rate down in our auction process.

So if you need a $9,000 loan and want to pay 12% interest, you may end up only paying 9%.

In a similar statement, Lending Club offers investors higher returns (see report) and borrowers lower-cost loans through an online financial community that eliminates the high cost and complexity of traditional banks.

Name

Email

Location

URL

Add your comment

Save my personal data

Notify me of any new comments.

Submit the word you see below


Hi guest,

Bills in Congress

Articles