Money may be right under your nose if you want to borrow

Wednesday, August 5, 2009, 8:57 AM | Leave Comment

Banks have tightened their grip on borrowing money for mortgages, small businesses, canceling home equity loans and cutting borrowing limits on credit cards.

Traditionally, folks also borrowed from family and friends even though at a smaller rate. Time may be just right to take a different direction.

Borrowing from relatives is as old as the history can take us, but today’s person-to-person lending market makes that loan more formal and accessible.

Americans are increasingly turning to a timeless source of credit: one another. Person-to-person lending, facilitated by Web-based companies, is quickly coming of age.

The market is dominated by three major players – Virgin Money, Prosper and Lending Club – although there are more than a dozen others.

These companies facilitate loans between friends and family by providing loan documents and automatic debits from the borrower’s account. They also serve as matchmakers between strangers wanting to borrow and willing to lend.

Read about it on these and other websites. Understand the process and the procedure of how to go about it. But if you need the money and the banks and other financial institutions are reluctant to give you the loan, then these online ventures are available to you to borrow money.

In a Nutshell
Whenever and from whomever you borrow money and for whatever reason, you must keep one thing in mind. You are borrowing money. That means you are renting it. And whatever you rent in life, you must be able to return it to its proper owner within the mutually agreed upon time so that others are able to borrow as well.

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