Make Money Lending your Money!

Make Money with Peer to Peer Lending!

 Peer to peer lending

There is a new way of getting a loan or if you’re an investor, offering a loan. The concept is peer to peer or simply, the average guy lending money to the average guy. Sounds great for the borrower but terrible for the investor at first look. The company is called LendingClub and they match qualified borrowers with investors. Everyone is screened and the company shows their track record since opening in 2007. An impressive record I can say. Google made an $125 million investment in LendingClub just last year.

So if you have money in the bank right now making 1% interest or maybe a GIC making 2% you can put that same money in the LendingClub and make a very safe 6 to 9% return rate or a more aggressive return rate of up to 25%.

How it works is each borrower is screened and rated. A top rated borrower would be your safest investment and you would get the lower 6 to 9% interest rate. As the borrowers rating gets worst the interest rate goes up. I should mention LendingClub has a very low default rate so it can be much safer than the stock market. If you spread your capital around into 2 or 3 loans you can reduce your risk. But all in all it’s a great way to make easy money. And millions of people are getting into it across the globe. I want to invest myself but I’m not  a US or UK citizen and that’s were the more reputable companies are located. I’m not impressed with my current 2% 1 year GIC sitting in the bank, actually losing money when you factor in inflation.

Here are some eye opening stats on Lending Club:

Loans funded: $4,034,212,750 - Interest paid to Investors: $379,133,060

Here is a list of some of the larger and established Peer to Peer companies you may want to consider loaning your money to:


LendingClub: “You cannot mention peer to peer lending without first talking about Lending Club. The lending giant has issued over $3 billion in loans to thousands of borrowers. Each year finds Lending Club more than doubling in size, with an expected IPO for 2014. While Lending Club was the second company to launch, it has by far been the most successful, issuing a record number of loans almost every month for the past four years.” (Citation,

Prosper: “Prosper, the first platform launched, continues to be a great alternative to Lending Club. While this company has issued less than a third of Lending Club’s volume, Prosper’s sizable total issued loan amount is nothing to sneeze at. Many lenders, including myself, have earned a better return here than Lending Club. We continue to enjoy the savvy automated investment option that only Prosper has. It makes peer to peer lending a near-passive investment.”(Citation,

PeerForm: Founded in 2010 by Wall Street executives with extensive backgrounds in Finance and Technology, Peerform is dedicated to connecting dependable borrowers with smart investors.


Zopa - RatesetterFunding Circle - Auxmoney - isePankur - Pret d’Union

ThinCats - Smartika - Comunitae  - Funding Knight 

While the U.S. currently leads the world in volume of P2P loan transactions at 72% , a sizable chunk comes from Europe, at 26%, and 2% from the rest of the world.