Guidant Financial Group Blog

The New York Times released a story last week on peer lending citing a dramatic increase in both interest and participation (see Person-to-Person Loans).

Duh.

Private loans have increased dramatically in the last six months due to the mortgage crisis and rise in foreclosures, but, we believe, one of the main factors in its growing popularity is the ease of which investors can now make loans.

Websites like Prosper.com and Zopa.com make peer lending so easy, even a four-year-old could do it.

Even better, you can start out small: the minimum loan on prosper.com is $50.

The websites do all the heavy lifting for you, providing credit scores, financial information and transaction details for each borrower. Additionally, the community lending model allows you to diversify your portfolio (something we are strong proponents of).