With banks tightening lending requirement, more cash-strapped people going without the money they need for that new car or home improvement – or they are forced to pay a too-high rate for the loan.
Well, now there are several answers to this problem. Peer-to-peer lending is a fast-growing online business and can save people lots of money. It works like this: you go to the site, type in how much you want to borrow and what interest rate you want to pay.
The site then tries to match you up with potential lenders who are trolling at various different rates and loan amounts. Prosper.com, zopa.com and Facebook’s LendingClub are three of the companies now offering peer-to-peer lending.