Lend or Borrow Money Without a Bank

Why should banks always profit from lending when it can often be done without them? Person-to-person lending eliminates financial institutions from the equation often benefiting both the lender and borrower. If you have money to invest, consider lending it to others. If you need a loan, consider getting it from someone else willing to support you and/or your cause.

Borrower Advantages
  • Benefits individuals rather than financial institutions
  • Transparent and fair interest rates and fees
  • Feels good
  • Flexibility of loan conditions
  • Helps establish connections with others
  • Not solely based on credit scores

Caution: start small until payment relationship is established. Best to do within a known community or another place of shared value.

Lender Advantages
  • Creates a more personal connection to your money and what it's supporting
  • Equal or higher return on investment
  • Feels good and empowers others
  • Flexibility to choose what you want to support such as community projects, small businesses, students, or good ideas

Assuming Loans

Assuming debt is a good place to start when considering intimate financing. This saves borrower's money on interest and often gives lenders a higher return.

 

Online Person-to-Person Lending and Borrowing Services

Kiva - Kiva is a micro-lending organization that connects borrowers and lenders from around the world to alleviate poverty. You can easily find out who needs funding and contribute small amounts to various people and projects through their website.

Prosper.com – Peer-to-Peer lending. “Prosper is a leading online destination for borrowing money and investing in loans. It pioneered peer-to-peer lending, which allows people to invest in each other in a way that is socially and financially rewarding. Additionally, Prosper's auction model provides an open and transparent way to get a personal loan or invest in loans on terms that are favorable to everyone involved in the transaction.”