Peer-to-peer lending (also known as person-to-person lending, peer-to-peer investing, and social lending; abbreviated frequently as P2P lending) is the practice of lending money to unrelated individuals, or "peers", without going through a traditional financial intermediary such as a bank or other traditional financial institution. This lending takes place online on peer-to-peer lending companies' websites using various different lending platforms and credit checking tools. This business model has its origins in the U.K when a company called ZOPA opened its doors in 2005. Notable p2p organisations/Companies Zopa - Was founded in Feb 2005. It is claimed to have issued over 350 million GBP and has over 500,000 clients. Kiva-Kiva lends through local microfinance companies. They have 1,003,977 lenders,disbursing over $483,320,925 in loans in loans with a high percentage repayment rate. Zidisha-Is the first peer-to-peer lending service to operate across international borders without local intermediaries managed by a non-profit in the USA. It lends mostly in the developing world. They claim to have raised USD 1,386,153 in loans,financed over 3705 businesses and have 6847 members worlwide. Lendingclub.-Was founded in 2007 by Renaud Laplanch. It brings together creditworthy individuals and investors. They claim to have funded $2,696,790,225 in loans to date. Prosper loans marketplace-Is another player in the peer to peer lending industry. They offer lunsecured loans from $2,000 to $35,000 with a repayment period of 3-5 yra depending on prosper rating. Pro's Low lending rates(Mostly below 10%) Lower volatility of interest rates Cons This lending model attracts borrowers who might be a credit risk Lack of government protection for lenders Give me your views on the above
Very valuable information but websites like gofundme are also doing crowd funding which has become a new crowd funding model