To Prosper, Or Not To Prosper

"Kiva is interesting for people looking for innovative charities, but what about people who want to turn a profit? With Kiva you have good odds of getting your money back, assuming the person you lent to doesn't default. But what if you wanted to get in on the action your local banks are already apart of. Have you ever wanted to become a bank? That's where the money is right?"

"There's a newer market out there to help you achieve just this, and its called microlending. Like the charity based microlending operations you can choose who you are going to lend to. In addition you bid on an interest rate you are willing to charge. Assuming you are the winning bidder (match the acceptable criteria of the borrower) you are now unofficially a bank! Imagine ebay, but for lenders. The only site like this I know of is Prosper, but I know there are many out there."

Read more of "Prosper"

Yeah, Prosper looks interesting. I took a look at this a few months ago, but I was surprised at some of the loan requests-- very high, and some very risky. For example, I saw one for a girl who wanted it to pay off her credit card debt. She couldn't pay back her credit card company, so why would she pay me back? I took another look this morning and see others looking to do the same thing. I guess there could be some good to this. I mean, 9.5% interest for a loan provided by me instead of 20% for a loan from the credit card company could be a win-win situation. Some of these are very risky, though.

All that said, I agree, both Kiva and Prosper are filling different niches and I think there could be a place for them both!