Are you ready for a site that’s going to make you scratch your chin and say “hmmm…?”

The site is called Prosper. It’s all about peer-to-peer money loaning and borrowing.

Here’s how it works: You need a loan. You post how much you wish to borrow, what interest you’d be willing to pay, and for how long. Your request goes into the system.

In the meantime, a person with money to loan bids on the loan with the lowest interest rate that they would accept. You don’t have to have the full amount of the loan.

The lowest bidders are pooled together and receive interest from the borrower.

Intriguing, huh?

The process is further bolstered by borrowers forming and joining groups. Each group strives to be known as prompt payers of installments. Your reputation is enhanced by the group you are a member of, BUT you have to make those payments on time, or you’ll be booted out!

What about fees, you ask? Quite reasonable ones apply. Borrowers are charged 1% or $25, whichever is greater. Lenders are charged .5% annually to service the loan. In the event of late payments, a collection agency is assigned who will charge a fee if payments are recovered.

So if you’re looking to loan or borrow, give today’s Family First site some consideration.

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