Comments on: Social lending the next Web 2.0 phenomenon – Part I

By: Gill

Gill — Tue, 03 Nov 2009 05:21:51 +0000

Is there a chapter in South Africa. If not, what would it take for you guys to be able to provide lending to South Africans. We source funding for small and medium businesses in South Africa and as you know the bank system is great at offering umbrellas when it’s not raining and are not inclined to provide funding to start up or new businesses needing to expand.

By: GR

GR — Tue, 28 Apr 2009 22:22:57 +0000

There is a reason that banks exist. Banks are generally able to provide intermediation between depositors and lenders more efficiently than peer-to-peer lending can. It is difficult to establish creditworthiness of the borrower through social lending networks, though granted credit scores do make this possible to some degree. Also, banks allow default risks to be shared, whereas if your PTP loan goes bad, you’re out of luck. Interesting concept, but I’ll stick to the banks.

By: Channel Z

Channel Z — Wed, 30 Nov -0001 00:00:00 +0000

There’s laws to be thought of here, like state usury laws which put a limit on how much interest can be put on loans, and limits on the extent to which a person loaning money can ask for the money back (e.g. threatening loss of life/body part, or retribution against peers/family).

This seems more dangerous then anything else, since using the internet – you can avoid these little state based laws.

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free online tv

By: Tratfor

Tratfor — Wed, 30 Nov -0001 00:00:00 +0000

Unfortunately there is no shortage of either ethical individuals or unscrupulous ones. Imnagine the people on web romance sites.
Imagine money being involved.
I would be very wary of this and the logistics of ever seeing loant money again.
A fool or even trusted person and his money are soon parted.

http://www.tratfor.com

By: Dave Nicholson

Dave Nicholson — Wed, 30 Nov -0001 00:00:00 +0000

Hi, Dave from Zopa here,

Just wanted to chip in and say that lending at Zopa is very safe for lenders and borrowers. We do all the same credit, ID and fraud checks that a bank does, and as a lender, we’ll split up your loan over 50 borrowers to create a portfolio for you.

In over 18 months of business we’ve only had one defaulting borrower – and lenders are seeing returns (after the Zopa fee and bad debt) of 6.75%

Shout with any questions,

Cheers

Dave

By: EG

EG — Wed, 30 Nov -0001 00:00:00 +0000

Free online tv? What the hell?

By: Winnipeg Glendale

Winnipeg Glendale — Wed, 30 Nov -0001 00:00:00 +0000

Come to Winnnipeg where “Pay Day” Loan Shops avail.
The banks have left town so to speak and opened computerized banking.
These people do not feel comfortable in banks and as well do not fit requirments for bank accounts – an address of more than 3 months etc. etc. etc. . As well they do not have funds to wait for clearing time periods of funds.
Enter their saviour. Pay Day Loans. Have your money now.
Modern day slavery.
http://www.glendalegolfs.com

By: Anonymous

Anonymous — Wed, 30 Nov -0001 00:00:00 +0000

You cannot avoid state laws on Prosper, usuary laws are taken into account, you CAN NOT lend beyond the state limits http://www.prosper.com/legal/states_and_licenses.aspx. Prosper is the actual LENDER of the money to the individuals looking for the loans. The so called “Lenders” that actually bid on the loans are actually the “loan purchasers” of the loan that Propser actually funds and sells to the “Lenders”.

By: Anonymous

Anonymous — Wed, 30 Nov -0001 00:00:00 +0000

i think social lending is a great thing.not only do you have prosper but there is zopa and lending club.

By: Phil Lanuto

Phil Lanuto — Wed, 30 Nov -0001 00:00:00 +0000

I think the interesting story here is how credit scores can make anyone into a lender. I used to work at a bank and basically they loan based on credit score. Now that it is so easy to get access to these scores, anyone can set up shop and use the same methodology as the biggest banks.

I’d be a little wary combining social networking and money, but hey, maybe it will work