Where do you go when you need a small loan but don't think you'll qualify for one from a bank or credit institution? You could ask your family, but doing so may ding your relationship worse than an application would ding your credit score. Or you could appeal to a stranger--and become one of a growing number of borrowers that are turning to loans provided by peer-to-peer lending institutions.
Spurred by the growth of technology that easily connects two strangers with shared interests, peer-to-peer lending is a rapidly growing sector of the financial industry that is predicted to top $5.8 billion as of 2010, according to a study by the research firm Celent. And when you consider the lingering economic slump and growing unemployment coupled with rising interest rates on credit cards and tougher requirements to qualify for bank loans, it's no wonder that personal lending networks are becoming a viable alternative.
Spurred by the growth of technology that easily connects two strangers with shared interests, peer-to-peer lending is a rapidly growing sector of the financial industry that is predicted to top $5.8 billion as of 2010, according to a study by the research firm Celent. And when you consider the lingering economic slump and growing unemployment coupled with rising interest rates on credit cards and tougher requirements to qualify for bank loans, it's no wonder that personal lending networks are becoming a viable alternative.
- 11/12/2009
- by Lydia Dishman
- Fast Company
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