Peer To Peer Loans - Loans To Those That Really Need It

Author: Robert Kempster

I have always been conscious of the old saying that a Banker is someone that lends you an umbrella when it is sunny and takes it back when it is raining. I do not know about you, but I remember my banker always trying to give me a loan when I did not need one; only to turn me down when I needed it.

Well, my aim is to share with you today, some of the things that I have found that helps you to survive all the challenges of remaining liquid or in some cases "the ability to put food on the table". In particular I will like to talk about a "new" mechanism called Peer To Peer Loans or P2P for short.

Peer to Peer loans are usually funded in an auction scenario. Borrowers list their loans and lenders bid on it. I believe they have been around since 2006, and went through some SEC loops and most are now registered with the SEC.

Peer To Peer lending amounts range from $1,000 USD to $25,000 USD and the rates are usually pretty low compared to bank rates for unsecured loans. You need at least a credit score of 640 to 660 for these loans. The auction scenario allows individual lenders to bid for your loan and thus drive down the rate of interest for your loan. Most of the loans are well below credit card rates and thus create a win-win situation for all concerned.

If you are interested in investing by lending out money for profit [you could invest as low as $25 units, or just want to get a low interest unsecured loan between $1,000 to $25,000. Leave a comment or shoot me an email and I will send you the links.