Bookmark These: Social lending cuts banks out of equation
By Reid Kanaley
http://www.JewishWorldReview.com | (MCT) Social lending — the formation of formal and informal networks of individuals to facilitate usually small loans — is on the rise. Is the practice a threat to traditional banking? Could be.
SOCIAL LENDING: This site gives a primer on social lending, with an old
A similar page at MoneyRates also describes lending sites, including several for students raising money for college. One of these, GreenNote, says it helps students meet criteria for receiving charitable donations.
HOW TO BORROW:
Prosper.com, which effectively shut down to new business from late 2008 to mid-2009 while it got into compliance with the
Lending Club says it has helped fund loans totaling
PROS AND CONS: There's an upside and downside to most financial deals, and social lending is no exception. For example: You can borrow small amounts, and the interest charged may be lower than the bank's, but even social-lending sites can have strict requirements on borrowers' credit ratings. For investors, there's the chance that borrowers won't pay up. This posting at mint.com suggests ways to balance the advantages and the risks.
FUTURE LENDING: A researcher at the
Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.
Comment by clicking here.
Resources for saving money on summer vacation
© The Philadelphia Inquirer. Distributed by McClatchy-Tribune Information Services.