Online Loans by social lending

 
Social Media Go Into Online Loans

Person-to-person lending is gaining ground on the Web, according to Jane Bryant Quinn in the Vancouver Sun today:

Social lending, person-to-person, is getting more attention as other sources of small loans dry up. Borrowers are looking for angels willing to make small business and personal loans. Angels gamble that they can find dependable people, make some money and have some fun.

She lists some interesting websites that a student or anyone else looking for an online loan may find worth checking out:

Zopa.com
Zopa is the world’s first social finance company. In 2005 it pioneered a way for people to lend and borrow directly with each other online. Since then, it has expanded across the world. In each country Zopa is a little different, but it’s always the same big idea.
Prosper.com
At Prosper.com, borrowers post the loan they want, the maximum interest rate they are willing to pay and, in most cases, their monthly income and expenses. Lenders bid on the loan, offering lower rates.
Lendingclub.com
Lendingclub.com specializes in loans within affinity groups such as alumni associations and Facebook friends. You can bet on individuals or buy into a portfolio of loans.
Fynanz.com
Fynanz.com bestows ratings on its student borrowers, with the best rates going to seniors and full-time students. You don’t get credit reports, but there may be co-signers, which helps.
Greennote.com
Here students don’t even have co-signers.

There are many more details in the original article. This certainly brings a whole new dimension to the notion of social media.

[Update as of October 9] Apparently Zopa US has now closed its doors. It was supported by credit unions, which have terminated this arrangement in these troubled economic times.

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15 thoughts on “Online Loans by social lending

  1. I have been searching on the net for canada services student loans and end up visiting your site. I really like the posts here, especially this one regarding Loans by social lending | BPWrap. I already bookmarked your site and sure visit again.

  2. I tried prosper.com but my credit score was too low for anyone to bid on me. Now a days a 640 isn’t exactly a good bet but I was asking for $10,000 also which is quite high. I’ve been trying to improve my credit score and in the future I’ll try person to person lending again.

    It’s tough to hear about Zopa – too bad.. =/

    -Ryan

  3. Great info. My friend had been looking for something like this. I’m sure he would love to hear about this. Thanks for sharing.

  4. The World Bank said on Tuesday that China’s economy will grow by just 7.5% in 2009, the lowest level in 19 years, due partly to the global economic slowdown.

  5. Great write up. It was extremely useful and provided a lot of information. Fe w of my colleagues were discussing about this few days back. I can point them to your site for further information. Once again awesome stuff. Thanks

  6. It should be interesting to see what happens with the rest of the list. They are in the business of lending money, and if they dont lend because markets are frozen, then essentially, they are out of business too.

  7. This looks great! Who decides if the person asking for the loan gets it? Many people that make personal loans do it for expenses that are not that responsible and many of them can’t pay them back. I this case if it is the person that lends the money that decides, people will have a harder time getting the personal loan and that is for sure a good thing. This way people won’t get pushed into it by impulse and because of the marketing efforts by the lending agencies, that make it seem perfect by hiding the high interest rates etc!

  8. Social lending is a powerful concept….I wonder if it will survive the difficult economic times we are facing currently. Lending is risky business right now and returns would have to reflect that risk. Whatever happens…big changes are on the horizon.

  9. Cool article. These online social lending services are really helpful to students. The concept of it is very very good. But there is a risk in it. So what ever you do give a little think about it before you make the next step.

  10. So many people have ideas, few are really very good. But the biggest problem is they have no idea how to write a business plan. If they did they would save themselves and everyone a of time. While you probably won’t get the money it’s a good idea to start with the Small Business Administration (i.e. Gov’t). Use them as a resource to hone your plan so you can go after private money later. It’s free. Years ago when I first got out of College I used them to try to get funing for a project. It was an eye opening experience. Book learning vs. the real world!

  11. Nice list of sites. I think peer to peer lending is still something that is relatively unknown to the average consumer. Maybe this financial crisis that we are in will force people to use as another line of credit.

  12. I’ve never heard of this. Guess it brings back the old notions of how building societies and friendly groups started. I like the way the new kind of brings back the old values for recycling.

  13. Social lending is useful. It opens opportunities for people to have some extra incomes from the rates by lending their money. I think the first investment doesn’t have to be that big like opening up a big business and this is good for people who don’t have much money but want to earn extra. Individuals also can take this opportunity to lend money and use them for owns purposes.

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