| Highly Personal Loan Lending |
| By Credit Federal |
Published
12/3/2007
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Unsecured Loan
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High risk personal loans from private lenders
Many credit consumers are struggling to repay debt ontop of everyday expenses. Meanwhile, banks are tightening their lending policies.
So how will these consumers obtain the cash they need? By getting loans from other people instead of from banks.
Through online resources, even bad credit people are considered as potential borrowers by private, personal lenders who have become financial investors.
Although social lending (individuals borrowing from each other) has long been around, the internet now makes it easier for borrowers to connect to personal loan lenders; strangers, outside of their local area.
Online, borrowers can find better rates than traditional banks offer, while lenders can earn higher returns than from a savings account or other type of investment.
Borrowers specify how much money they need; up to $25,000, as well as the purpose of the loan and what interest rate they can afford to pay. Prospect lenders choose loans and bid on those they desire to fund. In many cases, lenders fund only portions of each loan and spread their risk over multiple borrowers. Most loan requests are for debt consolidation, with average loan amounts just below $7,000.
With the personal touch of person-to-person loans, even borrowers with late payment or other bad credit entries can get the cash they need for nearly any reason and with no collateral and no cosigner.
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