Lendingclub to introduce p2p lending to Facebook members

Lending Club

Today, Lendingclub.com launched offering a p2p lending service to Facebook members. Members can request loans between $1000 and $25000. Other facebook members can the lend the money to the borrower. While technically not arranging loans between freinds like CircleLending, Lendingclub makes uses of the social network and the trust that users have into it. Lendingclub combines aspects from other p2p lending sites like Prosper.com and Zopa.com.

Comparing it to Prosper:

  • Lendingclub requires higher credit score as threshold for borrowers to apply (640 compared to Prosper’s 520)
  • Lendingclub suggests an interest rate based on the borrowers credit grade rather than letting the borrower set an interest rate.
  • There are groups like at Prosper

Lendingclub uses what it calls “LendingMatch” to automatically match parties on shared connection it finds. Lenders can additionally manually select and search loans.

Lendingclub

The founders of Lendingclub, one of them has a background at Mastercard, raised $2 million in angel funding (source: VentureBeat).

Using an existing social network gives Lendingclub a great marketing advantage over competitor Prosper.com, which had to build its memberbase starting from zero.

Prosper sees federal license as long term goal

Following up on my previous post there now is a statement by Andrew, an employee of Prosper stating:

Our long-term goal, however, is to get a federal lending license. It will solve a lot of problems for us (state rate caps, primarily), but is simply harder to get. Nonetheless, it is something that we are pursuing aggressively. As with just about everything else we do, unfortunately, I cannot give you a specific date. Please understand that it is a huge priority for our business, and we are ushering the process as quickly as we can (unfortunately, it's more a process of waiting on regulators than us actually doing things proactively).

Ebay to enter social lending

Several weeks ago Ebay bought Microplace. Microplace (like Kiva) aims to offer microfinance loans to individuals with entrepreneurial spirit in developing countries . Anyone can help fund loans with as little as $100 dollars investment according to Microplace. (Source on Ebay buying Microplace).

Other news: There is a site solongbanks.com saying it will offer peer-to-peer lending. No further information could be obtained.