Social Lending
Peer to peer lending (p2p lending or social lending) describes a new financing model that occurs directly between individual borrowers and lenders. Through p2p websites, lenders and borrowers are able to facilitate loans without the need for a financial institution to act as an intermediary. To date, more than $500,000,000.00 in loan orignations have been reported by peer lending websites.
P2P lending has grown in popularity and is quickly becoming a mainstream tool to borrow and lend money. The leaders in the industry include companies such as LendingClub, Prosper, Virgin Money, and Zopa. On this page you'll find links to the latest news and analysis for the social lending industry. I am also an investor in loans with LendingClub and Prosper, and regularly share my lending experiences here.
| Peer to Peer Lending Sites |
Registered with SEC |
Accepting New Lenders |
Maximum Loan Amount |
Note Trading Platform | Comments |
|---|---|---|---|---|---|
| LendingClub Rating:  |
Yes | Yes | $25,000 | Yes | FICO score of 660 or higher required to borrow |
| Pertuity Direct Rating: New |
Yes | Yes | N/A | Social Lending Mutual Fund | |
| Prosper.com Rating:  |
Pending | No | $25,000 | Pending | Interest rates set by auction, similar to eBay |
| Virgin Money Rating:  |
No | Yes | No Maximum | No | A means for friends and family to borrow and lend |
| Kiva.org Rating: |
No | Yes | $25,000 | No | Interest free microloans to support small businesses in the developing world |
| ZimpleMoney Rating: New |
No | Yes | No Maximum | No | A means for friends and family to borrow and lend |
To get started, here are some articles and toolsyou may find helpful as you explore the peer to peer lending option as a borrower, lender, or even both:
Check out our LendingClub Interest Rate Calculator, currently in beta.
An Interview with LendingClub’s Rob Garcia
How to Buy and Sell Loans on LendingClub’s New Trading Platform
LendingClub Files Amended S-1 and Discloses Changes to How it Sets Interest Rates
Lending Club Halts New Lender Registrations and Referral Program Pending Filing with SEC
Prosper vs. Lending Club SmackDown–Who has the best interest rates?
A Visual Guide to Lending Money with Prosper’s New Portfolio Plans
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