Peer to peer lending sites can offer an alternative option to borrow money when you need it. These online website companies are not like traditional banks, who are most likely to not approve or qualify you nowadays if your credit score is lower than 600. With social borrowing, you have the option to get an unsecured personal loan from an individual through an online platform. This takes the financial institution out of the lending process, who may not consider your personal situation and why you need the money. With lending websites that feature P2P borrowing, the investor will want to know this information. To help you, I will feature a list of sites that offer social lending — some of which are for individuals, businesses, developing 3rd world locations, and renting sports cars.
Peer to peer lending sites online
Energy in Common: This social borrowing company started providing microloans in 2010. Their goal is to fight poverty and provide funding for 3rd world countries that don’t have modern power. If you are looking to help others improve their situation through a small amount of money, this can be a good site. Unfortunately though, you most likely won’t qualify for a loan to upgrade your furnace.
Funding Circle: This is a UK based P2P lender for businesses that started in 2010. If you are trying to start up a business, this is the company website platform you want to apply a loan through. Funding Circle does have credit checks in place to keep risk lower for investors. Despite the risk, the average return on investment is more than 8 percent before fees and taxes.
Grameen America: Based out of New York, Grameen America provides peer to peer lending in urban areas. using microloans. The first loan you get from them is no more than $1,500 and they are used to create businesses that make money, such as flower stands, salon services, food carts, and tailoring. This peer to peer website was founded by
Muhammad Yunus in 2008.
HiGear: Although you won’t be able to get a money loan from this company, you will be able to share an exotic, luxury, sports car. This is short term but can be just the thing to impress your girlfriend.
Kiva: This microfinance website for peer to peer lending uses online sites to bring together microloans from investors that help develop struggling countries. Headquartered in San Francisco, this company started in 2005.
Lending Club: San Francisco based, this peer to peer lending site is one of the first to register with the Securities and Exchange Commission. This is the company you want to use if you need an unsecured personal loan. You can receive money based on your credit score and history and loan amount desired, along with details about yourself.
Milaap: This microlending platform allows investors to extend credit loans to people in India. This can help develop a country that is struggling. Money dispersed is used for sanitation, vocational training, and drinking water.
Prosper Marketplace: Based in San Francisco, Prosper provides a P2P lending site that allows borrowers to request funds ranging from $25 to $25,000 for each request. If you are looking for an unsecured personal loan to finance debt down and have a credit score of at least 640, you will be able to get the money you need based on your creditworthiness.
Qifang: This is Chinese peer to peer lending for student loans. Philanthropists, banks, non-profits, companies put up money to lend young people who want to gain an education.
Rang De: Based in Bangalore, India, Rang De is a business based site for peer to peer lending. It offers microloans to Indians that want to start a small business or don’t have the capital to grow their business.
RateSetter: RateSetter brings together investors and creditworthy borrowers who need a low cost loan. The borrower determines how much they want and the interest rate they are willing to pay. This saves borrowers money and they are not strapped over a barrel with this British based company. Keep in mind, though, that if you have bad or poor credit the P2P lender may require a higher rate.
RelayRides: Like HiGear, RelayRides is a service that allows people to rent out their vehicles on a short term basis.
Vittana: Based out of Seattle, this peer to peer lending site offers student loans to people in developing countries. Loans range in size from $200 to $1,500.
Zopa: Zopa brings social borrowers and social lenders together. This UK company allows loans from £1,000 to £15,000 that can be paid off between 2 though 5 years. You also have the option to pay early if you can.
Although these are not all the peer to peer lending sites out there, this sample list of social borrowing companies should help you get started.