Friday 29 July 2011

Bypassing the bank to get higher returns

Peer to Peer Lending (P2P Lending) is a new way to lend and borrow money online with others.
Think “I got a loan, online” (for borrowers) and “I just became a banker” (for lenders) – and…. you begin to see.
Where do these models eventually lead? Towards an online “digital financial network” – managed by you and me.

•    Borrowers receive bank-competitive interest rates and lenders can yield bank-like returns on invested funds.
•    Thousands of individuals lend as little as $25 per borrower. You don’t have to “know” anyone to receive a loan.
•    Privacy, security, and legal compliance are built in. More than $500 million in P2P personal loans issued to date.
•    P2P Loans are a new portfolio asset class. Diversify by investing into large pools of FICO pre-qualified borrowers.
•    P2P allows Social Lending: You may opt to transact with friends and family to foster a generational wealth effect.