Thread: Curious About A New Investment Opportunity

To romanojames - the interest, like other loan sources, depend on you, your credit and your ability to repay (make payments). There are also fees involved just like other lending sources. However, one social lending site is touting loans as low as 7.5%. They also say that investors can earn 7% to 13% - which means loan interest rates will be in that range as well. In conjunction with social lending - there are also micro-credit loans for...

I have just been hearing a lot lately about whats called social lending -- i think its also known as Peer to Peer lending. Can anyone explain how this sort of lending works? I like the concept, and i perused prospers online investing page, If i understand correctly someone posts the loan they need and investors sorta "bid" to win the loan. If anyone can explain a little bit better how this works and if its a profitable way to...

Quote: Originally Posted by phanio You are correct - someone posts a loan request. The social lending network will pull credit and post that. Then other members/lender bid on the loan - which could potentiall drive the interest rate down. If enough lender agree to fund the loan - the social network will conplete the package, fund and service the loan. Terms are usually 3 years and rates can be better than bank rates. As a lender, it is a good...

Peer to peer lending is not a new concpet anymore. It is almost becoming mainstream now. It can be good for the lender (investor), but it's kind of like onesies twosies. The lenders usually lend very small amounts (less than $100) and the borrowers need to find either groups of lenders, or many individual lenders. It can take a very long time to gather enough lenders to reach their requested loan amounts. It's definately been a good...

wow! Great idea, I just hope that interest is also affordable. I consider it help. this will be a big help specially in this kind of economy we are all facing. thanks for sharing.

I think its a great way to earn a little more than bank interests on savings account however, since this is a pool of creditors, there is a huge probability that one or two can get away. I mean lending someone and asking for payments is a bit hard, imagine asking payments from several people.