There are lots of peer to peer lending sites. If you become a member on these sites, you can lend money to another user as well as get a loan from other user. In order to avoid cheating, the site applies strict rules. A burrower has to provide all the information from government sources and share his social media accounts. have you ever tried peer to peer lending site.
I have never tried this kind of sites. I wonder how worth it is sharing all that sensitive information online. In case of dire need when one has nothing to loose I feel it could be a good deal. I am assuming one has to be charged an interest rate for the loan?
I have not even heard of such a site before. When there're so many options available in the market, then why would someone deal with such unknown entities. Online world is already full of frauds. Financial transactions here could be even more unsafe.
I used to lend through Zopa, a peer-to-peer lender. The idea was originally that you could cut out the banks, so lenders got a higher rate of interest than a bank account, and borrowers got a lower interest rate. Borrowers were banded into several markets depending on debt and reliability, and you could choose which band you put your money into. Then they would match you to a borrower in £10 portions, spread across as many lenders as possible. No one had to share social media accounts or anything like that, and you got a certificate at the end of the year for your tax records. Borrowers and lenders could chat to each other through a pseudonymous message board, which actually made defaults less likely as it wasn't a faceless corporation getting ripped off. I stopped doing it when it removed the personal touch completely. The lowest bands were dropped, and it seemed to me it was less social lending and more about making a profit. Things like Funding Circle allow businesses to raise funds like this. In some ways it is just another form of crowdfunding or gofundme.
