Can Peer-To-Peer Lending Programs Jump-Start Banking?
Lending Club is a company which solicits capital from investors and uses that capital to make loans. Because it bypasses much of the cost and bureaucracy of the traditional banking system, Lending Club offers to give investors higher returns while offering borrowers more attractive loan rates.
LendingClub Lures Investors as Consumer Loan Rates Top Bonds
LendingClub Corp., a startup that lends money to help consumers pay off credit-card bills, consolidate debt and take vacations, is attracting investors who buy pieces of those loans and get higher returns than they can from stocks or bonds.
Should You Take the Plunge into Lending Club?
Somewhere in Mt. Pleasant, North Carolina, a guy is using my money to build a swimming pool at his house. I know this because I lent him $25 through Lending Club, a site where ordinary people lend money to (and borrow money from) other ordinary people. Like other peer lending sites such as Prosper, Lending Club promises big returns (over 9.5% on average, after taking fees and defaults into account) if you're on the lending side, and lower-than-credit-card rates on the borrowing side.
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