From www.modestmoney.com -

The real draw(about peer-to-peer lending) for many people is that the loan originates

from average ordinary people and not some too big to fail bank that will harass you

a week after your payment was due. For many people, this is a good way to both get money

and make money while helping others.

In the peer to peer lending space there are really two major players. The first is called

Lending Club and the other Prosper.

Over the course of this article, I will explain how each is similar and different in their

offerings and requirements.

Editor�s Note: Adam from ModestMoney.com gives a succinct and accurate description

of the differences between the two P2P lending giants, Prosper and Lending Club. The article

is impressive because it gives you the most important differences that weigh heavily on

decision making when choosing a P2P lending format, whether you're borrowing or lending.

The article is slanted more towards informing borrowers of the best peer to peer lending

company to loan from than anything else.

The Modest Money site is refreshing in the sense that they don't try to talk over your

head. You get great, useable peer to peer lending info without all of the pomp and circumstance.

Here are our article highlights:

Loans are funded by your peers, in other words, normal folks. You explain why you need the

loan, give any relevant details and your peers purchase notes on your loan and you get paid

when all notes are purchased. Loans that makes sense get funded quickly.

It's important to detail your plans for the loan so that the investors feel secure in

selecting your loan to lend their money. Put yourself in the lender's shoes, give them

the details or risk being ignored. Both companies charge 5% on closing fees,

be sure to add that into your loan request so that you don't come up short.

If you need to borrow more than $35,000 neither P2P platform will work for you, they both

lend in the range of $2,000-35,000. Both lenders have fluctuating interest rates

on their loan, but nomatter the flucation rate they both keep interest rates far better

than traditional bank rates. Lending Club doesn't lend in as many states

as Prosper, check for loan availability in your state with each prospective lender.

Proper pays out to borrowers 2 days faster from the time the loan is approved to the

time it arrives in your bank account. It takes Lending Club 6 days compared to 4 days for

Prosper. Looking at the way the banks are still denying

qualified lenders and making life hard for small business and debt consolidations loan

seekers, it's becoming obvious that if you need a loan P2P lending may be your answer.

Do your research and make educated decisions.