What Can Peer to Peer Lending Do For You?
Peer lending has been around for hundreds of years but until recently it’s been confined to friends & family loaning each other money. Now the technology is in place that opens up a whole new market for investing.
Leading edge companies like Prosper, Zopa, Virgin Money, and Lending Club have created electronic marketplaces where people in need of capital can request a loan and people looking to invest money can fund the loans.
The Wall Street Journal Online recently featured peer to peer lending in it’s Personal Finance Report. You can listen to the coverage below:
So How Can You Make Money with Peer Lending?
Banks make money by borrowing at one rate, then lending at a higher rate. By cutting out the banks, peer lending sites remove the interest and fees charged by the middle man. As a result of the savings, borrowers can get lower rates and lenders can earn higher returns than either would have been able to at a traditional financial institution.
You can invest anywhere from $25 – $25,000 dollars on sites like Prosper and Lending Club earning interest ranging from 7.75% up through 27% depending on the financial profile of the borrower.
If peer lending sounds like something you’d like to learn more about then sign up for the free Lending Profits course below. Enter your name and email address and we’ll send you instructions on how to access this free course. If you sign up soon we can show you a no-risk method to make your first loan on Lending Club.