After the stock market crashed at the end of 2008, many people, including younger generations became very skeptical of the stock market and what it had to offer as a legitimate place to park your money. Peer-to-peer lending is a concept that has been around for a very long time, but the method as to how it was carried out was not always efficient at all. It went a little something like this:
Friend #1: Hey best friend, can I borrow $1,500 to get a new car?
Friend #2: Do you promise to pay me back?
Friend #1: Of course, you know that I’m good for it!
Friend #2: Ok fine, I’ll get the money to you by next week.
The truth is that these situations are very common. We enter into lending/borrowing agreements with friends and families all the time, and the lender enters into a situation with unlimited risk and no reward for their risk.
This is where a website like Lending Club comes into play. Lending Club is a peer-to-peer lending network that brings investors and borrowers together to satisfy both parties needs by offering a secure, legal, and efficient service. Those people who wish to take more control of their investments can lend money to borrowers, and borrowers who are tired of having limited options for choosing a personal loan product can try Lending Club.
How Lending Club Works
For Investors – sign up as a Lending Club investor
- Deposit funds (via ACH, wire, check or PayPal).
- Easily build a portfolio of loans based on your criteria.
- Receive monthly payments of principal and interest. There are no maintenance fees.
For Borrowers – sign up as a Lending Club borrower
- Get quick approval on a fixed-rate, 3-year loan from $1,000 to $25,000
- Once approved, most loans fund in less …
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