Peer to Peer Based Lending, has anyone here tried it?

[127.0.0.1]

Hey,

So I was wondering what your thoughts are on this new trend that's taking off, of peer based lending.

Basically it's a form of lending where, instead of going to a single bank and trying to convince them to give you a huge loan, you create a profile which is seen by multiple small investors who each loan you a small amount up to what you need.

I think it sounds like a great idea, especially now in this downed economy, and I figure it might be easier to convince a bunch of small time investors, over a bank, for a loan.

Anyway, what are your thoughts on the idea of it?

 

[DaisyDay]

I lend through Kiva, but that's a sort of charity (no interest earned).

 

[ggmillar]

There are two peer-to-peer lenders in the US: Prosper.com and Lending Club. (Full disclosure - I am an employee of Prosper.) From a borrower's perspective the sites are very similar, though Prosper will lend money to people with credit scores of 640 and above and Lending Club sets their limit at 660.

Loans are unsecured loans so you don't need collateral. You can borrow up to $25,000 on Prosper.

Applying for a loan is easy. It takes less than 15 minutes. Either site will do a "soft" credit pull, which means they will pull your credit report, but it will not hurt your credit. You will then get an interest rate based on your credit history.

From there you can decide to post the loan request on the site. The loan is then funded by dozens and dozens of lenders who loan you small amounts of money. Once your loan is completely funded, Prosper deposits money in your account. You then make monthly payments of principle and interest and Prosper distributes these payments to the lenders.

There is no pre-payment penalty so you can pay the loan off at anytime.

Today is actually your lucky day. Prosper is running a promo, (today only - October 21, 2011) where they will make your second payment for you, saving you quite a few bucks. Go to prosper.com.
Glenn G. Millar
Prosper Employee

Hey,

So I was wondering what your thoughts are on this new trend that's taking off, of peer based lending.

Basically it's a form of lending where, instead of going to a single bank and trying to convince them to give you a huge loan, you create a profile which is seen by multiple small investors who each loan you a small amount up to what you need.

I think it sounds like a great idea, especially now in this downed economy, and I figure it might be easier to convince a bunch of small time investors, over a bank, for a loan.

Anyway, what are your thoughts on the idea of it?

 

[A_maize]

I've actually invested money on Lending Club, and its not bad, especially if you need a loan and have at least a decent credit score. Also, in this economy, the banks are very reluctant to make any unsecured loans, so its much easier to loan from p2p sites. The process is probably a lot easier than actually going to a bank. However, these companies report to the credit agencies, so your score can go up and down depending on whether you default or not.

You can't go wrong either way, but Lending Club seems to have much more investing/funding going on, so you may want to check that out. I'm thinking of taking out a loan myself, not decided yet though.

 

[127.0.0.1]

Thanks. I'm looking for people who can review their experience with peer-based-lending so I can include the reviews on my new site.


If I could be allowed to use the two posts above for my site that would be great!

 

[bricklayer]

Our church gives money to church members who may or may not give it back.
I know of people who have bought trucks, tools, equipment, etc. through the church.
As I write, I do not personally remember any of those who expressed an intent to repay not doing so, but I would be surprised if that has never happened.

 

[127.0.0.1]

I thought Churches donated, not lended...?

 

[bricklayer]

I thought Churches donated, not lended...?

Churches both give and invest money.
I give to and invest in my church.

We remember our investments, but we forget our gifts.

What a church does not do is profit from money given back; there's no interest. A church does not pursue money invested in people anymore than it does money given.

Let me give you an example. We, some of us men from the church, invested in another man. Through the church, we paid for some needs he had (rehab) and kept his family afloat while he took care of his problem. We made it perfectly clear what we expected him to do and that we expected him to come home and take his place among us. There was a great deal of love and a small amount of violence involved, but that was many years ago and he has since taken his place. He is a good man a giving man and has invested in other men. In that case, our investment paid off.

 

[jamescarvin]

Hey,

So I was wondering what your thoughts are on this new trend that's taking off, of peer based lending.

Basically it's a form of lending where, instead of going to a single bank and trying to convince them to give you a huge loan, you create a profile which is seen by multiple small investors who each loan you a small amount up to what you need.

I think it sounds like a great idea, especially now in this downed economy, and I figure it might be easier to convince a bunch of small time investors, over a bank, for a loan.

Anyway, what are your thoughts on the idea of it?

There is a program called Mosaic for funding solar projects that has something like a loan and return program and there are several crowd funding programs if what you want is to start a business. For business loans you can write a promisory note to whomever you want with equity as security using a pledge agreement.

 

[keith99]

Churches both give and invest money.
I give to and invest in my church.

We remember our investments, but we forget our gifts.

What a church does not do is profit from money given back; there's no interest. A church does not pursue money invested in people anymore than it does money given.

Let me give you an example. We, some of us men from the church, invested in another man. Through the church, we paid for some needs he had (rehab) and kept his family afloat while he took care of his problem. We made it perfectly clear what we expected him to do and that we expected him to come home and take his place among us. There was a great deal of love and a small amount of violence involved, but that was many years ago and he has since taken his place. He is a good man a giving man and has invested in other men. In that case, our investment paid off.

Often the ones most deserving of help are the ones least apt to accept it as a 'gift'. But they will accept an interest free loan. And if it works they seem prone to repay in full and find a way to add more.