Social Lending Vendor list
Online/Auction based marketplace model
Prosper � members can bid on loans with as little as $50. Borrowers can create a listing of as high as $25,000. Prosper offers advanced listing section with diverse options for thorough loan description, which makes it easier for individual investors to pick a loan and for borrowers to describe the nature of their loan request in greater detail.
Lending Club � the online �club� for lending and borrowing. The site offers easy to use interface for both lenders and borrowers, and a detailed tracking system of all the transactions associated with issued loans. Lenders can jump start their lending to help individual borrowers with as little as $25.
Loanio, with an auction based peer-to-peer lending platform, originates all the loans that go through its system. Loans then sold to members of the platform who would like to lend their money to borrower members. They become loan purchasers or �lenders� as they called on the website. Lenders can fund a loan for only $50. Loan amounts established are normally between $1000 and $25 000.
Zopa. In UK all lending and borrowing is conducted in the Zopa markets. Each Zopa market consists of borrowers in a similar group with common credit score and time frame of the loan. There are five different markets based on the credit score: A*, A, B, C and Young market. Lenders can choose on which market to lend or scan through each individual listing and choose which members they would like to help. Currently, Zopa provides its services in Italy, Japan, and UK. Visitors can choose the appropriate country at the top of the site to check its lending and borrowing process.
Fynanz is a social lending hub created to cater to college students. Students apply for a loan to finance their education needs which is created on Fynanz website and auctioned online for individual lenders to bid on the approved loans.
Social CD/Mutual fund model
Pertuity Direct constructed their own peer-to-peer lending business model quite differently from all of the above social vendors. A portfolio of borrower loans in a form of mutual fund is offered to investors. Lenders invest directly into National Retail Fund. Pertuity Direct is registered with SEC (Securities and Exchange Commission) and U.S. Securities which enables them to select individual loan proposals for the mutual fund, eliminating the need for lenders to scrupulously search through every single listing.
Family and/or friend model
Virgin Money offers its services in four parts of the world: UK, Australia, South Africa and USA. The purpose of the site is to manage real estate, business and personal loans between relatives and friends. They provide all the tools necessary to initiate and complete a loan process, from drafting promissory notes to calculating payments and even servicing the originated loans. Loan size does not have a cap and is determined based on borrower and lender's mutual agreement. Interest rates are also negotiable between lenders and borrowers.
LoanBack is geared towards helping lenders and borrowers to create customized loan agreement based on their specific needs. They also help with payment schedule and interest calculations, but all loans have to be arranged privately. LoanBack offers their services in two formats with its unique advantages: Loanbuilder, which comes with a fee of $29.95, and Loan Forms with a fee of $14.95. Their contracts possess legal power in all fifty states.
New social lending vendors
CommunityLend is the first peer-to-peer lending site based in Canada. The platform currently undergoing beta testing. It's too early to classify their model of social lending, but anyone who wishes to lend with them can sign up for more information on their website
Please, note that many social lending sites currently undergoing approval process by proper authorities, and their services may be partially or fully unavailable in all states.
