Peer to Peer Lending - Ebay of Loans
P2P lending is similar in many ways to eBay. Borrowers create a listing where they state the amount, loan duration, and the loan interest rate they are seeking. Additional information can be added as well such as the reason for the loan and how soon you need it. The Listings are then posted and can be watched, emailed, linked to, bookmarked, promoted, or even reported if improper etc.
There is a financial valuation that includes a personal budget, income and asset verification, and credit check, to determine the credit worthiness of a borrower. The lower a person's credit risk, the lower their interest rate and loan payment will be.
Lenders then bid on the borrower offers. Upon a successful bid the lender/s funds are automatically deposited into the borrower's account.
Lenders on the P2P lender sites receive excellent returns compared to savings account plus the satisfaction of knowing they are helping the economy grow by helping small businesses and other individuals such as themselves.
Lenders can search for borrowers by a variety of factors, such as keywords, type of loan, credit criteria, and amount of loan funded etc.
Lenders can easily spread their loans among multiple borrowers through diversification which ensures a relatively low risk and reliable return.
Loan payments are then automatically deposited in the lender's bank account.