p2p lending sites

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.

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.