It's an online marketplace for peer-to-peer lending, no banks involved. Basically if you need a loan, you go on to the web site, post how much you need a loan for, and how much interest you are willing to pay. Then the sites' lenders bid on your loan.....your money can come from just a few people or lots, in small increments. Your profile shows your credit rating so your lenders know what they are getting into, but it also allows you to explain yourself....why your rating is so low, what got you in that position, etc.
Highly suspect.....because after designing a bank and learning about
federal banking regulations.....it just sounds to good to be true.
We would have to file two weeks in advance of a shut down of a branch bank for approval....and the maximum number of days the branch bank could be shut down was thirty days.
The officers of the bank are required to take 2 week vacations but never at the same time just so the regulators can check to see if the books are being cooked.
I heard an NPR article on it a couple of months back. It's a bit like the microlending model. It's particularly good for people with less-than-stellar credit and/or those that need to borrow small amounts - basically, those with whom most banks wouldn't deal.
I thought about it at the time and haven't really given it much thought since then. I haven't any money to loan, and I'm trying to avoid racking up any debt right now, even small amounts. But, the next few months are going to have lots of flux for me, so it's possible this could end up being another good option if I need some cash for a short period.
I am becoming increasingly anti-THE MAN, so I am thinking that it sounds like a great idea. Plus I could see how if you were an individual, and you had some money lying around, you could make a decent amount of money off it.
As long as someone else did the interest calcs, because that stuff is like greek to me....
it looks like many people are there to borrow $$$ to help them get out of the financial trouble that they have already gotten themselves into through borrowing too much $$$ in the 1st place.
i also heard/saw a show on KQED here about microlending and how it's been quite successful in developing nations.
basically, $200 for someone living in Echo Park is no big deal, but the same $200 is enough for a Senegalese woman to start her weaving business and break free from the poverty-stricken economic climate in which she lives...for example.
it's an interesting concept, and Muhammad Yunus, the guy who pioneered it won last years Nobel Prize.
mightylittle- I wondered the same thing. For instance, one woman wants to start a personal training and image consulting business. While she's semi-slim/fit, I don't think I'd buy her services as an image consultant based on that pic, so I don't think of her as a good investment.
I recently signed up as a lender... not that I have much to lend. I figured I'd try it out and see if I can get a better return than my current savings account.
Need money? Got money? Share!
I heard about this and I'm very intrigued:
http://www.prosper.com/
It's an online marketplace for peer-to-peer lending, no banks involved. Basically if you need a loan, you go on to the web site, post how much you need a loan for, and how much interest you are willing to pay. Then the sites' lenders bid on your loan.....your money can come from just a few people or lots, in small increments. Your profile shows your credit rating so your lenders know what they are getting into, but it also allows you to explain yourself....why your rating is so low, what got you in that position, etc.
It's like Craigslist for loans.....
What do you think? Would you do it?
I wouldnt mind borrowing from such a site, but lending, probably not, and I'm a trusting person.
Highly suspect.....because after designing a bank and learning about
federal banking regulations.....it just sounds to good to be true.
We would have to file two weeks in advance of a shut down of a branch bank for approval....and the maximum number of days the branch bank could be shut down was thirty days.
The officers of the bank are required to take 2 week vacations but never at the same time just so the regulators can check to see if the books are being cooked.
I think we are a way from Craiglist Banking.
I heard an NPR article on it a couple of months back. It's a bit like the microlending model. It's particularly good for people with less-than-stellar credit and/or those that need to borrow small amounts - basically, those with whom most banks wouldn't deal.
I thought about it at the time and haven't really given it much thought since then. I haven't any money to loan, and I'm trying to avoid racking up any debt right now, even small amounts. But, the next few months are going to have lots of flux for me, so it's possible this could end up being another good option if I need some cash for a short period.
Seems to me its a way to get the Government OUT of personal business. I could see people who are anti-THE MAN, to be down with it.
I am becoming increasingly anti-THE MAN, so I am thinking that it sounds like a great idea. Plus I could see how if you were an individual, and you had some money lying around, you could make a decent amount of money off it.
As long as someone else did the interest calcs, because that stuff is like greek to me....
it looks like many people are there to borrow $$$ to help them get out of the financial trouble that they have already gotten themselves into through borrowing too much $$$ in the 1st place.
This is a good one I heard about in the TV box.
i also heard/saw a show on KQED here about microlending and how it's been quite successful in developing nations.
basically, $200 for someone living in Echo Park is no big deal, but the same $200 is enough for a Senegalese woman to start her weaving business and break free from the poverty-stricken economic climate in which she lives...for example.
it's an interesting concept, and Muhammad Yunus, the guy who pioneered it won last years Nobel Prize.
wiki entry here.
i wonder if anyone underwrites or guarantees the loans for prosper dot com?
it's weird to see that some people on there will likely get more bids on their pleas because of how they look in the picture!
it's like a myspace bank.
garpike, I was going to post something about kiva just now....you beat me to it! Thanks.
That one's pretty cool because I could actually do it, and in doing so, help out someone halfway around the world.
Kiva is the firm that was featured on the KQED piece i saw.
they're local bay area peeps.
it's a vastly more compelling way to get involved...
mightylittle- I wondered the same thing. For instance, one woman wants to start a personal training and image consulting business. While she's semi-slim/fit, I don't think I'd buy her services as an image consultant based on that pic, so I don't think of her as a good investment.
maybe she wants money to improve her image with some glamour shots and some professionally designed brochures?
I recently signed up as a lender... not that I have much to lend. I figured I'd try it out and see if I can get a better return than my current savings account.
i just want to get rich quick
mighty, I think that's how I heard of Kiva.
I lent some money to a girl once for some implants...she said it was a career move
So I take it now she is broke, and you are broke, but she somehow gets the rent paid each month?
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