Social lending start-ups like UK based Zopa.com and the US based Prosper.com bring lenders and borrowers directly together to cut out the banker and help both parties save money. This business model is similar to eBay in that a listing is created and bids are taken from competing buyers. This enables the loan rate to get bid down giving the borrower a better rate while still giving the lender a good return on their investment. The loans are unsecured and amortized over three years with no penalties for early repayment. Read more »