Need Cash?
If you need a loan, you can get a great rate (as low as 7.7% by borrowing on Prosper.com. Just click on the banner above.Lending
You have to love the banks. They have beautiful marble interiors, helpful tellers, and those great ball point pens attached to chains. Many of our local banks have "savings" accounts that pay about 2% interest. These same banks have loan products (including credit cards) which can charge in excess of 30% interest. It's all fair enough. After all, someone has to pay for all that marble. This leads to a question. Is it possible to cut out the bank and get better rates for both the lender and borrower?
Peer-to-peer lending
Enter peer-to-peer lending. Prosper.com formed to bring lenders and borrowers together without the need for the banks. Borrowers decide how much they would like to borrow and the maximum interest rate they are willing to pay. Lenders then "bid" for the loans.
Peter Planchet and Marcella
Marcella lives in Fort Myers, Florida. She purchased a used car. Since she had no prior credit, the bank lent her money for 25%. Peter Planchet lives in a small town in the North East where he found a money market paying 5%. interest. Dr. Planchet took some money out of the money market and lent it to Marcella at the rate of 15%. Marcella saves money while Dr. Planchet earns money. Happiness prevails.
Steps to lending or borrowing
First, you need to register at Prosper.com . Registration is free. There is no obligation to borrow or lend.