The concept of lending to peers isn't new. Family and friends have always lent each other some bucks without the involvement of a financial institution.
Bypassing the bank
All peer-to-peer sites have one important feature: They remove the role of a traditional bank in the lending process. Cutting out the bank reduces overhead, for one, which translates to better rates for borrowers and lenders,
All p2p lending sites have some sense of community. Instead of a bank deciding who will get funded, individual lenders make the call, paying attention not only to their expected returns but also the reasons borrowers are asking for funding.
Interested in borrowing some cash using a peer-to-peer site? The first step is picking which Web site is the best fit. "You need to understand the model you're utilizing in peer-to-peer lending. They all have nuances and differences," There's also a Facebook component, which allows users of the social networking tool to lend to their friends or find borrowers who belong to the same groups or networks.
