Peer to Peer Lending is called P2P for short. The idea is perfectly straightforward. People lend to others through the Internet. In principle it could be run using a laptop in Stornoway. In practice it needs data back up. It also matters whether the people running it are honest. This tends to mean licencing in some form. They charge lenders 1% or thereabouts while borrowers are charged a setting up fee. Lenders carry the risk of default. The answer is to spread money over several borrowers. Martin Lewis of Money Saving Expert puts a view at What I Learned From Peer To Peer Savings. It seems that the goal posts have been moved against lenders. You don't get to choose where your money goes.
Here are some sources.
Funding Circle
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Funding Circle sounds better [ than Ratesetter, a greed driven operation ].
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It could be the way to go. Rates of some 6% are much better than main stream banks offer.
ZOPA
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Zopa UK is a peer to peer lending company [ P2P ]. There are others listed at Wikipedia Category: Peer to Peer Lending Companies. If you want your money back sooner for some reason go to http://uk.zopa.com/ZopaWeb/public/lending/rapid-return.html
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The way to go.
Wikipedia Category: Peer to Peer Lending Companies
More of them are there:-Kiva - http://www.kiva.org/ Microfinance mob, not keen on cock fighting.
Lending Club Based in America with $600 million under management. American residents only.
Milaap http://en.wikipedia.org/wiki/Milaap Microfinance.
P2P Finance Canadian, bigger loans.
Qifang Student loans in China.
Rang De Indian operation.
Ratesetter Based in London.
United Prosperity Microfinance.
United Youth Development Organization Microfinance.
Virgin Money UK Branson rears his ugly head.
Vittana Microfinance.
Zidisha Microfinance.
Bank Charges To Be Exposed - Maybe [ 17 October 2015 ]
They make £8 billion a year out of 'free' banking by offering rotten rates of interest. Since they all do it they are operating a monopoly, even one might say a conspiracy to defraud. Will open charging improve rates? Probably not but it is time look seriously at Peer to Peer Lending. It cuts the cartel out