Community Lending Websites offer Loan Auctions between regular people, similar to merchandise auctions on eBay, that allow you to get a loan if you’ve been turned down for loans by traditional lending institutions.
If you can’t get a loan from a traditional lender, or even if you can and you want to explore alternative loan options with the possibility of lower interest rates, you may want to consider a peer-to-peer lending network.
If you have additional savings that you’d like to invest, peer-to-peer lending groups provide you with the opportunity to lend money at lucrative interest rates, but you’ll have to choose loans wisely in order to minimize your risks.
Top Peer Loan Networks
Lending Club – Lending Club is a reliable peer lending network that can help borrowers save thousands of dollars and pay off high interest debt with low, fixed rate personal loans, and they offer opportunities to earn high-interest returns on investments for lenders.
Prosper.com – Prosper is a very popular community lending website in the U.S. for both borrowers and lenders.
Zopa.com – Zopa is an international leader in the peer lending industry that you may also wish to consider.
How Peer Loan Networks Work
Borrowers list the amount of money they need and the highest interest rate they are willing or able to pay, and then lenders bid on the portion of that loan that they are willing to lend with the interest rate they are willing to offer.
When the listing ends, the borrower gets their loan at the lowest possible interest rate, and the lenders get paid off over a set period of time while earning a profit on the interest charges.
The community lending websites make their profit by charging borrowers a small percentage of their loans and charging lenders a small percentage of their payments received, so lenders and borrowers have to take that into account when calculating APRs.
Peer Loan Benefits for Borrowers
The benefit for borrowers is that you’ll have the opportunity to get a loan that you otherwise may not have access to and possibly with a lower interest rate, although not always.
Peer loan networks are especially beneficial for poor credit borrowers that have been turned down for loans by banks and other lending institutions. Lending communities can offer you a last chance loan if you’re desperate to consolidate high-interest credit card debt or just can’t get a loan anywhere else.
However, these loans will adversely affect your credit if you don’t follow the terms of your loan and make your payments, so it is important to borrow money wisely and make your payments on time. Doing so will rebuild your credit and give you the opportunity to receive better interest rates in the future.
Some borrowers with average credit may be able to get better interest rates on loans than they would through traditional lending institutions, but that is not always true, so review current loan listings for similar loan requests to see what type of interest rate you can expect to receive. You’ll also have to consider the additional fees that the lending networks will charge.
However, borrowers with above average credit or excellent credit will probably get better interest rates through traditional lending options such as personal bank loans, lines of credit, and credit card loans.
Peer Lending Investing for Lenders
Lenders interested in making some money through lending networks will have to choose their borrowers wisely and consider the risks.
Although you can get a higher interest return from borrowers with poor credit, the risk is also higher making it more likely you’ll never get the full amount repaid. These are unsecured loans, so if the borrowers don’t pay, you may not get your money back. Defaulted loans go into collection and eventually get sold off or possibly just written off. Either way, you could lose money.
On the other hand, if you diversify your lending by making small loans to multiple borrowers with acceptable risk levels, you can get a really nice return on your investment, but it will definitely require research and diligence.
It’s worth mentioning that not all lending websites are for profit, and networks like Kiva.org allow concerned community members to lend money to people in developing countries that seek loans to grow their businesses or otherwise advance themselves.
Personal lending communities or peer-to-peer loan networks offer a viable option to traditional lending institutions, especially if you can’t get a loan, have poor credit, or are otherwise unable to obtain a loan with an interest rate that you can afford.
Find More Financial Deals
Check out more recent posts from our Financial Deals Category below:
- Qapital Banking App $25 Sign-Up Bonus
- SoFi Personal and Student Loans $300+ Bonus
- XE Money Transfers $50 Bonus
- NetSpend Prepaid Card $40 Bonus
- ELFI Education Loan Refinance $100 Promo
Review these top financial promotions to earn extra sign-up bonuses for opening new accounts from various financial services.
Michelle andrade says
I justdon’t know what else to do or where else to turn I fell behind on my rent because I lousy my job and resumed working somewhere new not long after but haven’t been able to get ahead I’ve paid something towards rent every month but couldn’t afford the full amount with part going to the late amounts. Right before Thanksgiving I was given a 30 day notice I now have to come up with the money to move somewhere and still pay my rent at my current residence. I am looking at homelessness becoming inevitable because I just cant get approved for any loans or other forms of help how can I even look for a place with out the movin cost. Is there really no options in a situation like this. Please tell me there is
Belinda Murphy says
I am in a very bad/scary situation. I am about to lose my apartment being behind on rent with 5 children. My husband(ex) refuses to help or pay his child support. I have recently started working back for Amazon but know I cannot come up with 2500 for my rent by next week. My credit score is low mainly due to student loans. If anyone knows anywhere/anyone who can help me I can pay it back with interest. I have direct deposit and can post date checks or do whatever I need to guarantee payment.
CO says
I am in need of a 15000 dollar loan I was out of work for a year and a half due to an injury fell behind on my bills and my job medically terminated me I have since got a job but it is only enough to cover currebt bills and I want to bring my bills current my wife is disabled and only brings in a fixed amount. I am willing to pay an interest rate of 15% please someone help I am in desperate need of help and I have yrird loans but because I fell behind banks don’t want to help.
Chan says
There is no such company named GT LOANS 48
Ashley says
I am in need of a personal loan in the amount of $7,000.00. I fell behind on bills and rent when my husband left us. I have two teenagers I’m raising alone. I now work 2 jobs and though I am able to maintain my monthly household obligations, I have not been able to catch up with the bills I fell behind on. I have tried to get a loan everywhere. Delinquent student loans were the main reason my credit score was low. Its even lower now due to having maxed out my 1 credit card, (before I started my second job), and now I’m considered a high risk borrower now since I’ve submitted numerous loan applications to different lenders. The money will be used to get current on all my bills and rent, give a down payment on a used car, (husband took our family vehicle when he left), and to get my children ready to start school in a week. I know there’s little to no chance and this is a long shot at best, but I’m all out of options and time. I hope there’s someone here willing to help me. Thank you for taking the time to read this post.
Steven Tutor says
Needing to do debt consolidation of $13,500 in order to get everything caught up and some relief. Will consider all offers. I work full time but have gotten behind and it is spiraling out of control. Please help!
Crystal says
Just like everyone here. I am in need of money . Not alot but like 2k my car is tore up and my light bill is due. I’m a single mom of 4. My credit is not awesome but it’s due to student loans and a car I financed for my teenage son that the payments were not kept up . Any advice on where I could get a loan would be great I think I’ve tried everything.
RNV says
Purchased a lemon house with multiple major issues, which left my family(2 parents, 5 kids and 4 dogs) with no heat through the winter, no electric downstairs, and have been dealing with fixes after fixes from wrongful disclosure or poor inspection. Been 2 months since purchase and have backlogged all resources juggling bills and trying to survive and deal with fighting for legal issues. Denied everywhere(decreasing credit score and increasing inquiries) due to debt-to-income ratio. In need of $25-30k to pay off home fixes, retain attorney and pay off one loan to divert that monthly payment towards this loan. Was prideful not to have a late bill for the last 9 years until now. Seeking help asap.
Holl says
I have been jobless, applied for an got a job but I have to move house to the new town and I don’t have sufficient money and banks have declined to give me a loan. Please help.
Henry MAX says
We are in desperate need of $15/k for debt consolidation and 2 months rent. We have already received the summons from the courts for eviction. Will repay from an ACH from our monthly Social Security check. I am 82 yrs old and with an eviction on my credit report I will be living under the bridge. Please help me. Don’t let me drown.
Jody S. says
Hi everyone,
Just like others on here, I am in a bad financial situation right now. I’m in need of $20,000, if anyone can help or tell me where I can get help. I need this by November 7th, if at all possible. I don’t want to file bankruptcy, I want to pay my bills. I’m in the process of trying to sell my house, and can repay after the house is sold, or monthly payments. My credit is shot from having health issues, which caused everything to snowball. I do work full time with some occasional overtime. I’m just trying to get a fresh start on things again and get back to having some kind of life instead of stressing everyday about what’s going to happen next. After November 7th, I’m not sure what will happen to my life at this point. Thanks in advance.
Wendy Steinberg says
I need a loan desperately I have relocated to Florida unfortunately since I’ve been in florida I have identity theft my acct were frozen. I was compromised with equafax credit report. I need to borrow 4000.00 asap
If anyone can help please
Kristen R. says
Hello Every and Anyone,
Along with everyone else commenting, I am in almost desperate need of some financial assistance. My boyfriend broke his heel a few months ago and has been out of work receiving workmans compensation checks until a few weeks ago when the checks started to get cut in half to almost nothing and has left a majority of the financial responsibility to me. I’ve been employed full time for the same company for over the past 8 years and I make a pretty decent income, but not enough for two people to live without worry. With him still unable to go back to work our debt is piling up faster then the money is coming in and we are behind on everything with what seems almost no relief in the near future. I pay my bills on time and even tho I am not thrilled about higher interest rates I’ll take anything to be able to pay everything off and not have this stress everyday. I’ve never had financial trouble like this in my life, it’s stressful, uncomfortable, gut wrenching, and I never want to feel like this ever again. My credit is not very good but it is getting better and I just need someone to give me a chance to get myself back on track. I live in New York so payday loans are not available to me and I’m turned down everywhere else I apply. I’ve asked friends and family to cosign but most are also in tight financial situations, already have multiple loans out or also have credit issues themselves. I’m not quite sure how this peer-to-peer lending works or how to go about it but I’m hoping and praying someone can help or point me in the right direction because I cannot live like this much longer ( literally tho I’m not going to be able to pay rent at some point and have nowhere to live) lol. I try to keep a bright spirit about things but this is very hard and very hard to reach out for help. Thank you to whomever for taking the time to read this and if you have any advice, want to help or are able to point me in the right direction I am more then grateful and appreciate to hear from you. And for everyone like me looking for help just keep on keepin on, it’s all we can do. It can’t stay bad forever.
Kristen R. says
You can contact me at: tips212@yahoo.com
Tiffany Walker says
I an skeptical, however at this point its worth a shot. I am in desperate need of a loan for about 1,500 dollars. I had a roommate and she literally up and moved out. I had just switched jobs and didn’t get a paycheck for almost 3 weeks and she had agreed to cover my part until i received that first check. Now I’m behind and my power is off and i am about to be evicted. I have applied everywhere and keep getting turned down because i do not have any credit. I am in serious need right now and do not know where to turn especially if i lose my home. Please Help! Thanks!
Zachary J blessing says
Hi I’m in a desperate situation I’m a part time college student and I have a full time job which is a long commute for me about 40 miles and my car broken down and I need a new transmission in my Chevy impala which I can get done for about 500$ from a reliable mechanic I’ve known for awhile but I can’t seem to get a loan anywhere I go and I will lose my job and not be able to make it to my classes if I cannot get this loan. I have a bank account and debit card, I can provide you with pre-authorized payments as well if anyone can work something out I’m willing to pay back as much as 2000$ for the 500 over a period of 3 months if anyone can help me please. I’ll sign any documents needed and provide identification in any form necessary. Please contact me at zblessing27@gmail.com thank you.
Charon says
I am in desperate need of a loan of $2,500
My estranged husband left and abandoned me our children. I don’t have anyone I can go to and rent is late and power bill due.
I work full time and can pay it back with interest
Help needed Asap!
Jasmine Patryce Jackson says
I have been struggling through no fault of my own. I just received two job offers thank goodness. I need a loan in order to get what I need for the job. I am willing to take a chance on the high rates. I need anything that can help so I have no set amount. Can someone please help?
Mary says
In desperate need of minimum $2400 installment loan, am willing to pay high interest rate. I am employed so will be able to make payments. Due to divorce and forced job change I had to resort to payday loans, which are killing me. I can not find a traditional loan, as my credit is very poor. Please if anyone can help.
James Scales says
6500.00 loan can be higher interest 18 to 24 term
James Scales says
Interested in s 6500.00 loan for business equipment, can be higher interest 18 to 24 term.
Natalie says
Looking to consolidate my bills total $ 15,0000. Would like to pay this off in 15 payments. Any interest rate will be considered.
Betty says
Help! I need $8,000 to catch up on all my bills including 3 payday loans that are killing us. Or $150,000 to pay everything off, including house, car and everything else. Please someone help! Good income but very bad credit. Thank you. Please answer.
Doug Casey says
I’m a 47 year old male no criminal past and a decent enough job $1800 a month been at for just over 10 years, I live at home with my mother no rent and only a few home related bills, my problem is I got charged with battery defending a person that was in my home under attack by a 240 pound giant of a woman, I weigh 158 pounds, I pulled her off the individual, in doing so she got struck on her nose and I was charged, along with the person that was being assaulted for misdemeanor battery as she lied and said we both hit her.
This person that caused this is related to a law enforcement officer and a court house employee in the town I live in, upon going to court, we learned our charges had been updated to a felony, because “supposedly” they had went to the victims advocate in our town and showed a bill where they went and had surgery on their nose, which I barely hit and only by accident.
I’ve yet to see any medical records this was a friend of my family my mother knows this persons mother rather well, and they have refused to show us the medical records pertaining to the surgery, which I am beginning to believe was cosmetic and not related to injuries sustained from trauma.
I need $4000 to get these charges put back to a misdemeanor, my mother is willing to put up the house to back up the loan for collateral, my credit rating is in the upper five hundred because of some bad debts sustained from my ex wife and her escapades… I can repay the loan and that should be within the next year and a half depending on the payment interest rate, I could easily pay $250 a month more on certain months but I’m needing the money fast and I do not wanna risk getting a felony on my record… Any help would be appreciated and you would be helping short circuit a wrongful charge against a innocent person.
DCasey12@outlook.com
Keith Maine says
I’m a hard working Floridian working in the landscape buisness located in south west Florida on the beautiful shores of the gulf of Mexico. I am moving locally and unfortunately I am short a couple hundred dollars to get in to my new apartment. I have regretfully expended all of my credit cards and have just not been able to catch up. Yes I have found myself living paycheck to paycheck and I am 36 years old. I am ashamed of myself. Never imagined myself in the position I have gotten myself in. I feel I just need a little boost to get back on track and able to pay for my credit card debt. I would not object to any fair intrest rate offered to me as I know I am high risk but do promise to stay on top of any lenders generously offering me funds I hope someone can help me.
Amanda says
Hello- I am a 27 year old with a full time job as a Sales Administartor for a company and an anual income of $50,000. I recently moved into a loft by myself and I wracked up a bit of credit card debt in the process. I am looking for a loan of $5,000.00 to pay off all my debt and start fresh with a monthly payment to one person/ lender over about 8 months time. I have poor credit because of the debt I created and I have been denied by all installment loan companies online. If you can help, by chance….. please email me.
Thanks in advance for all of your help,
Amanda
natasha needham says
Am in need if 80,000.00 i am renting a house and the owner wants ti sell very bueatiful home worth every dime but cant get morgage loan with my bad credit have two children one disabled i do not want to loose my home. My husband and i have great jobs and have been at them for a good long time can now afford my bills but credit score is ruined from past medical bills can anyone help can do 600.00 a month till paid.
nichole says
Hi I am looking for anyone able to help, like all here I am in a desperate situation. I have 2 girls under 3yrs and was previously just on centerlink. Unfortunate I have gotten behind in rent and issued an eviction notice. I now have a job but unable to pay back rent owing. I have a bad credit rating from owning a house 5years ago and financial trouble around that time. I need an Angel who is able to lend me $3400 for rent, payments won’t be a problem.
Dayanandan Naidoo says
Need money urgently to pay other debts been refuse by banks to many debts need to pay all and have 1 to pay too
Jerry says
I have bad credit. I found someone willing to work with me on buying a home from them. I need help finding someone who can loan me the money to buy this small ranch with a 3 bedroom house and 14.63 acres.
Lahela says
These past 5 years have been very difficult. A divorce, 2 government furloughs, lost everything in the 2013 flood, got laid off, single mom of 4 children and no help from the ex’husband, I was on unemployment for 3 months & finally got a full-time job with benefits for my entire family. My car has been repo’d & now I can’t get to work to dig myself out of this rut. Can someone please help me?
mavis says
I need loan for my kids school fees I have tryed everything no one want to loan me money I need 40000 only to pay my child school fees than they can give her the certificate help me please u can take the money in my account every month please
donna morrison says
i am on social security and i got behind on something like rent and i have tried ever where to get a loan and keep getting turn down i have two loan out that i am paying on to try to get my credit up because i have very poor credit all i need to borrow is 800.00 to a 1000.00 but the thing is come oct.30 th 2014 i well have to move over no rent for this month
About to loose everything/Please Help says
I am not really sure how this works; but I have to try…I lost my job and a single mom of 2 with their father who refuses to help even though child support enforcement has ordered it.. I can not find work fast enough to generate enough income to cover or catch up on just about everything from diapers to the roof over our head. My credit is not good. 540-574 depending on which one you look at. I have tried cash advances, however I can not pay them back because I have no income presently ,,, so they all deny me. I am stressed, upset, and could really; seriously use just an angel or honest person or company to give me one single chance at some help financially. i am not one to usually ask for help. My family is not in the position to help. I was approved for food stamps, yet that is not going to pay the bills. Is there anyone, anywhere that can maybe pass this along to try to help. You are more than welcome to look over my LinkedIn account to view my work credentials.,,,, in case you know of a job I could get hired for. Right now I am about to loose everything. If I have no roof over my children s head, I will loose them. The baby needs pull ups & diapers & wipes, and my other son, He needs his medication, I have never posted anything like this, I have a fear of being scammed or being taken for a ride financially. So I am taking a chance because I have no other choice. The local agencies tell me that I have used up the once a year help that they allow.
I am not going to say any specific amount, because basically anything will help right now. I have been trying to sell the baby’s clothes on eBay but I am not having much luck. If you would like you can help anonymously through my Paypal account using my email address. If you want. I don’t know,,,, I just know i need help any way possible right now.
If there is anyone that knows anyone or anything that could help, please email me personally. sclaytor@gmail.com
Thank you in advance. From the bottom of my heart.
Robin says
I am in desperate need of a loan of $25000. My credit is bad and I am in danger of becoming homeless in one week. I really need to find someone who is willing to lend me the money. I have a job so paying the money back over time won’t be a problem
Can someone please help me
Robin.
Becky says
Looking to refi our home to help my daughter with college. Home appraises of aprox 85k, we currently owe 32K. We had some medical collections when I suffered a stroke in 2011 which ruined our credit, all have been paid, and I have documentations to prove it. (Just have difficultly getting our credit reports to reflect it). We would like to consolidate other debt, get college money, and some home improvements. Looking for 70k loan with a ten year term. Can you help? I have retirement income, hubby has been at the same job for 28 years.
joy says
Please need 4500.00 for continuing education.
Gene Vock says
Needing a small business loan. About 6,000.00 dollars.
Kathy says
Had great credit then economy hit hard. Where can I search for P2P lender to purchase mobile home and rent to own to me. 24 yrs old,have 7 week daughter getting married, really need a place to call home.3 of us living in a small 7×14 room. Very tense situation.
Johnny says
Looking for $10,000 loan. I have land worth $41,000 for security. Bad credit.
MaximizingMoney.com says
Hello Jeremy,
If you’re looking for a loan from a peer lending network, then Lending Club is probably your best option.
https://www.maximizingmoney.com/personal-loan-deals/lending-club-peer-lending-network-offers-low-interest-rates-for-qualified-borrowers/
However, you will need a credit score of 660 to qualify for a loan, so hopefully you will be able to qualify.
You could apply for a loan through Lending Club and then pay off your auto loan from the bank.
Hope this helps, good luck to you.
cara says
This is so frustrating! If I had a credit score of 660, I wouldn’t need a P2P! WTF
jeremy Westfall says
I need a auto refinance loan so i can get my truck out of bad terms with the bank. Can make the payments now, just couldn’t before and now i cant pay back enough to get it back in the good. Can anyone help.
mervin says
need 30k private loan, can secure loan with house or land
L McCain says
I looked at the sites you provided and they ALL say that you have to have good credit. So where are the peer-to-peer sites that don’t require good credit? I really need to know. I am in need of a car and am between two rocks and five hard places.
Robin says
Med. Retired veteran with monthly income and very bad credit. in need of a home loan. $100,000 to $150,000
richard dorsey says
I need a last chance loan willing to pay high interest beats payday loans, can pay back through auto-pay
MaximizingMoney.com says
Hello deb,
If you have a qualifying credit score, you can receive a peer lending loan from Lending Club.
Read our article for more information.
https://www.maximizingmoney.com/personal-loan-deals/lending-club-peer-lending-network-offers-low-interest-rates-for-qualified-borrowers/
Lending Club and other peer lending networks are an excellent option to receive a loan with a decent interest rate.
Hope this helps and good luck to you.
deb says
I’m looking for a home construction loan to build a home on my own land. I’ve been turned down everywhere else, can you help?
Think Money says
Haven’t heard of Zopa before…
Am definitely planning to start lending on Kiva at some point though … great idea and cause.
Tammy Barker says
I am 65 years old an need someone to help. I shared a credit card with my boyfriend of 6 years and he is breaking up. He wants his name off. I am disabled. He paid his part off the remaining $5,000 balance is mine. I have tried to get a loan an from everywhere! I would like to get a balance transfer with no interest for 18 months no annual fee and just pay it off.But I need someone sign on the card for me.That would be the best have no one! Please somebody help!!!!!I have a car payment and this card with perfect payments.