We've written about peer-to-peer lending marketplaces before: Zopa (UK) and Prosper (US) both allow people to lend money directly to others, cutting out banks and other middlemen. Which means better interest rates for borrowers and higher returns for lenders. Described as eBay for loans, the P2P money exchanges work as follows: borrowers list loan details and a personal profile, and lenders bid on the loan. Lowest interest rates win. Lenders bid in increments and minimize their risk by bidding on numerous loans.
A study by Online Banking Report predicts that by 2011 person-to-person lending in the US could surpass 100,000 loans a year, worth more than USD 1 billion. Unlike eBay, which can connect buyers and sellers from around the world, peer to peer lending is generally bound by local financial regulations. Which means there's ample room for national or regional versions. A quick run-down of our most recent spottings from the realm of social lending:
Boober | Launched last month, Boober is bringing peer to peer lending to The Netherlands. The start-up works much like Zopa and Prosper, with prospective borrowers listing the amount they want to borrow, their credit rating, purpose of the loan, interest rate they're willing to pay, etc. Credit ratings are determined by credit report agency Experian. And loans to AA and AAA borrowers are guaranteed by debt collectors Intrum Justitia, at 90% and 99.5% respectively. Investors are required to distribute their capital over at least 10 borrowers to minimize risk. Borrowers pay EUR 19.95 to have their credit rating determined, and if their loan is funded, they pay Boober a yearly fee of 0.5% of the loan. Investors pay a yearly fee of 0.5% over the funds they've invested, as well as an annual contribution of EUR 9.95.
Boober's founder, Guus Drijver, doesn't hesitate to share his feelings about why Boober is better than the Big Banks: "Boober doesn't work with hidden costs and is completely transparent. We don't sponsor yacht races or soccer teams, and don't have expensive headquarters or pay thousands of people high salaries." Boober isn't alone in this sentiment; many consumers are equally discontent with banks and their high profit margins, driving interest in alternatives like p2p lending. After a beta phase in The Netherlands, Boober hopes to expand to Belgium and Germany.
Website: www.boober.nl / Contact: www.boober.nl/?lang=nl&content=contact.htm
Smava | In Germany, Boober will have to compete against Smava, which launched earlier this month. Smava currently allows loans of EUR 500 to 10,000. The company charges borrowers a 1% fee of the loan amount and EUR 10 for a credit check. Unlike Boober, Smava is following Prosper's lead by encouraging borrowers to form groups. By adding a level of peer pressure and control, tight-knit groups help lower the risk of defaults, boosting a group's reputation and attracting lenders at better rates. Smava's backers include Stefan Glänzer of Last.fm and ricardo.de.
Website: www.smava.de / Contact: www.smava.de/Startseite-223-972-Kontakt.html
CommunityLend | Set to launch in Fall 2007, CommunityLend hopes to revolutionize the way lending works in Canada. A test phase over the next few months will let users set up profiles, manage loans, bid on auctions and create groups without using real money. One to watch! Or invest in ;-)
Website: www.communitylend.com / Contact: info@communitylend.com
Wiseclerk.com | Meanwhile, feeder businesses are starting to pop up, too. Just as eBay spawned offline drop-off shops to facilitate online selling, Prosper has led to the creation of Wiseclerk.com, which aims to provide extra information to help borrowers and lenders make smart decisions: "With currently approx. 103,432 listings in over 989 groups created by over 46,779 borrowers and over 8899 loans successfully funded, it is hard to identify overall trends and find the pearls. Wiseclerk.com is dedicated to serve as an automated clerk, offering you the information you need."
Website: www.wiseclerk.com / Contact: info@wiseclerk.com
Spotted by: Marijke Krabbenbos
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this is a potentially big opportunity for small rural development. in addition to P2P, perhaps local stock exchanges could start as well. keeping money in a local community.
Great Idea P2P
If you want to know more about P2PLending and possibly participate to the disruptive trends in banking and finance, join the BarCampBank, a community of entrepreneurs and professionals whose aim is to foster innovations and the creation of new business models in the world of banking and finance.
- http://www.barcampbank.com for our site
- http://www.wikiservice.at/fractal/wikidev.cgi?EN/BarCampBank/BankAndFinanceWatch for a list of what's going on in the industry
habitant en france comment peux t on faire pour une demande de pret sans passe par la banque et les maisons de credits
France, with all its bank lending restrictions, is most certainly in need of private individuals lending/borrowing from eachother. This system would be a welcomed initiative in a country choked by banks too content to sit and cover their ....! look forward to hearing more!
j'aimerai savoir si vous avez un lien pour un site Français de transaction et d'étude de dossier de votre concept BOOBER credit de particulier à particulier.
Je suis africain vivant en cote d'ivoire et j'aimerais installer deux entreprises .Dites moi comment ça marche et puis félicitations pour le boulot .Salut
bonjour, nous sommes à la recherche d'une personne ou d'un groupe de personnes pouvant nous prêter la somme de de 35 000 euros, remboursable avec un taux d'intérêt supérieur au marché. nous sommes en mesure de fournir des garanties de remboursement solides. si vous pensez être en mesure de répondre à cette offre, ou si vous connaissez quelqu'un qui pourrait l'être, je vous remercie de nous contacter à cette adresse : fr.gasnier@gmail.com
existe t-il un site identique en belgique et comment fait-on pour introduire une demande sur boober.nl
merci de me répondre
Looks like another US social lending site has popped up. http://www.fundmynotes.com - FundMyNotes. The site is slated to be another of the many up and coming competitors of Prosper and LendingClub.
Bonjour, je recherche un pret de 150 000 € pour ouvrir un restaurant sur reims. merci de me faire une offre ou me poser les questions sur contacter daulus51100@hotmail.com
JE RECHERCHE UN PRET DE 200000EUROS SOIT 270000$ POUR L'ACQUISITION D'UN MAGASIN ALIMENTAIRE EN ZONE RURALE EN FRANCE. LE VENDEUR EN SOUHAITE 130000EUROS SOIT 200000$ + FRAIS DE NOTAIRE. IL Y A L'ACHAT DU MATERIEL ET DE LA MARCHANDISES QUI EST DE 20000EUROS. ME CONTACTER PAR MAIL : BERNARD.BOISSONNADE990@ORANGE.FR
PAS SERIEUX S'ABSTENIR
Another German attempt at p2p banking is elolly.de.
Ian | March 27, 2007 3:06 PM