Imagine if you could get rid of the bank and directly lend to those in need. You could potentially arrive at a rate like 13%, which is hugely beneficial to both lender and borrower.
When you put money in a bank, you get an average return between 4-8% on your deposits and when the banks lend money it lends anything between 18-36%! In the entire process,
Peer-to-peer lending hit the headlines in early December when former Citigroup CEO Vikram Pandit invested in Orchard, a New York City-based startup that aims to create a secondary market for P2P loans.
