Sunday, May 27, 2007

Lending Club - a new way to make money online

Now this is a fascinating development. Lending Club is a financial service for Facebook members - where Facebookers can borrow or lend money to each other, thus bypassing the traditional bank fee structure.

There are more details here


Lending Club is creating a direct person-to-person shortcut in borrowing and lending, bypassing the traditional role of the banks. Banks usually collect deposit on one side and extend loans on the other side; we provide a shortcut, a way to directly match lenders with borrowers. Starting today, we are offering a way for Facebook users to take personal loans of $1,000 to $25,000 funded by other Facebook users. Members who have the financial capacity are now able to extend loans to a pool of other members they choose from their network, neighborhood, and alumni. Loans carry a lower interest rate than bank loans but higher than a savings account, so both lenders and borrowers get a good deal.