Are there any peer to peer lending groups that are operating right now?
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I checked prosper.com and they are not operating right now. So, I was just wondering if anyone knows of any that ARE operating. I need a small (VERY small) loan for business expenses, and a bank won’t even touch a $600 loan.
Thank you in advance!
Yes. LC is operating for lenders and borrowers.
Here’s their link:
http://www.moneyscrounger.com/LC/borrowers
Peer to Peer Money Lending – A Good Thing
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With peer to peer money lending you no longer will have to endure the humiliation of being turned down by a bank for a loan. No more dealing with the outrageous interest rates that are charged by some banks. No more government policing of the bank loans you get. You no longer have to worry about standing in line at your local bank and filling out mountains of paperwork only to find out that the high interest rates absolutely don’t justify the loan. Instead, you can go online and join other Americans by working together to simplify the loan process through peer lending.
A peer to peer loan helps people who are financially struggling to stay afloat. It works wonders for homeowners facing foreclosure, people with over-the-top credit card debt and new business owners who are barely staying alive in today’s economy. Virtually anyone can apply for a peer to peer loan. Peer to peer sites (also called social lending sites) are where almost anyone can find a loan. All it requires is to access the site, sign up and apply for a loan. Just reveal how much you want and what interest rate you are willing to pay. Lenders will then take a look at what you’ve entered and decide whether they want to fund your loan. They may loan you the entire amount or only a portion of it.
These lending sites match you, the borrower, up with a potential lender (or lenders.) The higher interest you are willing to pay, the greater your chance of quickly finding someone to fund your loan. The most important thing is to have a fairly good credit rating so that lenders will feel comfortable taking a risk by loaning you money. They won’t loan you money if they have any doubt about receiving it back! Peer to peer money lending sites facilitate the transfer of money that is loaned and, in turn, handle the payment process back to the lender. This novel idea is really catching on and thousands of people throughout America are using it to eliminate (or at least lessen) their money worries.
Skip the Bank and Use a Peer Lending Network
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You can laugh all the way to the bank by skipping it entirely when you go to apply for a loan. All you have to do is select a peer lending network website and get the loan you want at a rate you can afford. Your job is to find a site that is the best fit for you. They are all slightly different and you need to find just the right one to fit your own financial situation. Look at the similarities and differences between them before making your final decision.
Lending Club requires its applicants to have a FICA score of at least 640. Also, a borrower’s debt-to-income ratio cannot be more than 30%. This essentially means that only those borrowers with good credit can get a loan through Lending Club. It also gives users the opportunity to lend to friends and family or find other potential borrowers by using a link to Facebook. Prosper gives the market the ability to decide which borrowers to fund. It doesn’t matter what your credit score is. Lenders look at your profile and decide for themselves if they want to take a risk with you. Zopa is directly affiliated with credit unions throughout the United States. It also requires a credit score of 640 and its users must belong to a credit union. Lenders invest in CDs and they also select the borrowers that they are willing to take a chance on. Virgin Money is a site that is directed towards friends and family members. It gives people who know each other a chance to help one another. Loans using this site are apt to be restructured if the need arises.
Using a peer lending network is a perfect way to get the money you need, when you need it. No more waiting in lines at the bank and spending hours filling out reams and reams of paperwork. No more red tape. All you have to do is go to your chosen peer lending site and enter realistic rates that you can live with. Don’t make them so low that a potential lender won’t accept the risk. Try your best to win the lender over by explaining in detail why it’s so important that you get the loan. Become his best friend by giving personal information about yourself. Be patient in getting your loan. It may take awhile to find just the right lender. And, finally, look closely at all of the terms of the loan. Make sure you fully understand the amount of the interest rate, the length of the loan and payback instructions.
Too Good to be True – Peer 2 Peer Lending
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You may be in a financial dilemma and have been unable to find any one to loan you money. This is a reoccurring problem that is happening all too often today because of our dire economic situation. Banks and financial institutions have essentially frozen their assets and are refusing to grant loans to almost everyone. But there is a way to get money if you are willing to try something new. It is called peer 2 peer (P2P) lending and it involves a business transaction between a borrower and a lender. No financial intermediaries are needed and it is growing in popularity by the hour. It is working for many individuals throughout the world who need some extra funds now.
There are at least 20 peer lending companies in existence today and they have generated over a half-a-billion dollars in loans. Many well-known publications such as the Wall Street Journal and The Economist have featured articles about this innovative way to loan and borrow money. The great advantage of using a peer lending service is that there is no overhead to pay (such as with banks) because the employee base is small and administrative costs are minimal. This means lower interest rates are paid on loans for peer borrowers and higher interest rates are earned by peer lenders. It is definitely a win/win situation for everyone involved, including the lending site because it charges a set up fee to the borrower and a small yearly fee to its lenders.
In a nutshell, peer 2 peer lending is American helping American, neighbor helping neighbor. And, really, isn’t that what our country is all about? The online peer lending market connects people looking for a loan with people wanting to give them money. It’s a simple as that. And, the internet has made the entire process readily available for anyone with access to a computer. P2P lending is innovative and may be the only way for the average American to get the cash he needs for a new car, boat or simply to pay off some large credit card debt. It is revolutionizing the loan industry and should be here for many years to come.
Steps to a Successful Peer Loan
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Getting a peer loan can be done quickly by taking three simple steps. Anyone who is looking for a loan can post a listing for a loan online and include the amount and rate that they can afford. Once submitted, lenders then start looking at the loan particulars and decide if they want to take a risk loaning all or part of the money to the potential debtor. Interested lenders then bid on the listings by submitting the amount and rate they are willing to consider. There are numerous individual listings posted and lenders can browse through and select one or more borrowers that they feel comfortable with. The final step is done by the lending company by combining qualified bids into a single loan for the borrower. The borrower will then be required to pay a set amount each month until the loan is repaid in full.
These loans are wonderful ways to avoid having to work with a bank or lending institution to get qualified for a loan. Because of this, there is no bank intermediary involved making lending rates lower. The whole process runs much more smoothly. Lending money through peer lending is very easy also. All you have to do is sign up, create a listing and monitor the loan progress from start to finish. You are the one in control, not an impersonal bank officer or a financial guru. Additional good news for borrowers is that the rate sometimes gets even lower when there are numerous lenders competing for the loan!
Peer loans are absolutely an awesome way to lend and borrow money. They have proved themselves over and over again during the past few years. Even businesses that are looking to expand operations are using the peer lending program to get the funds they need to further their growth potential. Many businesses today are finding it difficult to obtain the loans that they need to be profitable. Peer lending gives them the advantage of being able to set their own rates and loan amount. And, they also can cancel their loan listing at any time if it becomes financially necessary.
A Peer to Peer Community Town Meeting
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A personal loan is waiting for you if you are willing to join others in the fast growing peer to peer community. People just like you are lending to or borrowing from other people in your social realm. Banks are never involved in the process which essentially eliminates the middle man, saving you thousands of dollars in administrative and service fees. All you have to do is post your loan on a peer-to-peer lending site and provide such information as desired interest rate, reason for and amount of the loan and how the money will be paid back.
These loans are not guaranteed and are unsecured which means that no collateral is required. However, your personal credit plays a large role in determining if a potential lender is willing to take a chance with you. Better credit means that it is more likely you will attract lenders with the profile you put online along with your loan request. Higher credit scores usually result in lower interest rates and perhaps smaller payment amounts. The whole peer to peer concept has been around for a long time. It now is resurfacing because it is almost impossible to get a bank loan these days.
When applying for a peer to peer loan, make sure that you follow all of the step by step instructions given at the lending site. Always enter accurate information because this will help lenders feel comfortable when deciding whether to lend you money. Don’t leave anything out and be truthful in your answers. Before applying for your loan, learn all you can about the lending process. Check with experts who know about finance and tweak their brains for information about the peer to peer lending process. Don’t go with the first peer to peer lending site you find. There are many out there and evaluate the pros and cons of each one before signing up.
Borrowing by using the peer to peer community might be the only way you can get a loan at a reasonable interest rate. And remember that banks are no longer as apt to grant loans, even for those individuals with excellent credit ratings. This social lending system is working wonders for people who absolutely can find no other way to get the money they need.
Finding Peer to Peer Lending Sites
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Everyone has at one time or another needed to borrow some money from a friend or relative. It can be a sticky situation at best and can result in long-term problems between borrower and lender. However, there is a new business surfacing on the web that helps family, friends and total strangers arrange loans together. Peer to peer lending sites are abundant on the web and can be a life ring for people who just can’t get a loan from a bank. They are also there to help lenders earn a fair rate of return with little risk involved. Using these sites also eliminates many questions that sometimes arise with a peer to peer loan. Answers to how much to loan, what to charge for interest, the length of the loan and reminders about payments are taken on by the lending site rather than being something the lender has to worry about.
Peer to peer loans are transactions between people which essentially eliminate the middle man. This reduces interest rates that are always attached to bank loans and credit card debt. The sites make their money by charging a fee for arranging and servicing the loan rather than through interest charges. The process is quite simple: All the borrower does is apply for a loan for a specific amount and indicate what interest rate he is willing to pay. Then, a bid goes out to potential lenders to finance the entire loan or just part of the loan. The bidders with the lowest rates win the loan contract. An initial fee of between one and two percent is charged to the borrower and an annual service fee of between 0.5 and one percent is charged to the lender.
Peer to peer lending sites are really catching on throughout the United States. They offer an attractive alternative to any loan charging a high interest rate. They also are accessible to borrowers who may not have a stellar credit rating and have not been able to find a loan anywhere else. Lenders can invest as little as $50.00 to get started and are very exciting about earning higher returns than on other investments such as CDs.
The Real World of a Peer to Peer Loan
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The real truth about today’s lending environment is not good. It is difficult for even the most highly qualified individuals to get loans from large banks. A new innovation has surfaced called a peer to peer loan (or P2P loan) and it is catching on quickly. It is a way for average Americans to help average Americans. It lets borrowers bypass a bank or other lending institution and go directly to a reliable source for money. It helps lenders realize a profit on their investments in a fairly risk free manner. Ordinary investors basically become bankers and take on similar risks and rewards.
To start the P2P process, a borrower simply fills out a loan application. Then an individual lender bids to fund the loan. In the funding process, the lender looks closely at the credit risk involved and other associated factors and decides if he wants to loan the money requested. There will be many loan applications to look at and the lender can decide on the ones he is interested in funding. There are usually several investors funding one loan. Once there are enough lenders to fund the loan, the borrower is notified that the money is available and portions of the loan are sold to the lenders. A lender can buy into a loan for a very small amount of money, so most lenders diversity and spread their risk over several loans. All P2P lending companies use similar principals.
Peer to peer lending is beneficial to all parties involved. For borrowers, the rate they pay for the loan is usually lower than what they would pay at a bank. This is because there are fewer associated costs involved with processing a P2P loan. For lenders, the rate of return on a P2P loan is often higher than what they would get if they invested the money in a CD. Rates do vary but average between 9-12%. And, the lending company itself realizes a small profit from each loan it manages. A peer to peer loan has become part of the “real world” today and is helping to boost the economy by putting money back into the system.
Peer to Peer Loans are Catching on!
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Peer to peer loans are catching on throughout the United States. They are the newest way for ordinary people to get loans from other ordinary people. And there are online sites that are out there for investors and borrowers alike to do business. As a lender, a person can expect acceptable returns on the money he loans by placing bids on loans from borrowers. Borrowers also get interest rates that make them happy. This loan/borrow system is an excellent way for everyone to be a winner.
Lending companies sell notes to lenders during the bidding process. These notes contain all of the details regarding the loan such as the amount of the loan, the price, the yield percentage and any borrower information that applies to the loan. Any payment made to the lender depends on what the borrower pays on the loan to the note. Before purchasing a note, the lender should pay close attention to all of the risks associated with it and also get a complete description of the loan itself. These notes are highly speculative and carry a high degree of risk so they are not appropriate for all investors. The lender depends completely on whatever activity takes place on the note. If there is no payment from the borrower, then the lender will not get paid and returns plummet. It is possible that a lender will never realize a profit from the money he has loaned and, in fact, may lose all of it. Nothing in the process is guaranteed or insured.
Peer to peer loans are not the answer to everyone’s prayers but they do work in many cases. They have helped to better the economy by making money available to people who may not have been able to borrow from a bank during the current economic crisis. They provide fair rates of return for lenders and make money available at a reasonable price for those needing it. It is a fairly safe way for lenders to realize rewards from their investments. Most borrowers have acceptable credit ratings so risk is minimized somewhat. Most peer to peer lending companies require that their lenders are U.S. residents in the state where the company operates. And, investors choose how they want to invest the money that they are lending.
Prosper with Peer to Peer Lending
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Peer to peer lending gives investors a way to earn great returns without much risk. These consumer loans are relatively new and are catching on quickly. The return on investment exceeds those of savings accounts and money market investments. The way the program works is simple: The premise is that ordinary people loan money to ordinary people. It follows the same basic principals that occurred in the “olden” days when small townships took care of their citizens by lending money within its boundaries with no middle man in the mix. The result was that the entire process earned better interest and lenders received higher returns on the money they loaned to their neighbors.
Today’s economic times have convinced large banks that people to people lending might work on a larger scale. Although the personal contact and interaction that was present years ago when all lending/borrowing transactions took place in small towns, the basic principal still works. Many investment companies are now helping ordinary investors set their own loan strategies and actually do credit checks, choose bid listings and implement their own portfolio of bidding strategies. This opens up many new and exciting opportunities for anyone interested in becoming an active lender.
There are many ways for people to get loans regardless of their credit history. These people can go online and enter their personal financial profiles. Lenders can then review all of the listings and choose to loan money to those individuals that best fit their pre-determined risk and rate of return criteria. Investment companies are there to provide the right tools and other data to help individual lenders choose wisely. These same companies offer perks such as allowing you to spread your risk by loaning small amounts of money to several borrowers. On the downside, these companies are not FDIC insured and there is the chance that borrowers will default on their loans.
Peer to peer lending seems to be working quite well, especially since banks are no longer loaning as much money as they did in better economic times. People still borrow money and even those with excellent credit often find it difficult to get a loan. That is why many of them are turning to peer lending as a way for them to get the funds they need.