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Making Personal Loans For Fun And Profit

“…banks weren’t going to get us out of this (recession) mess.”

Looking for hefty yields? Lending Club offers them by turning you into a banker to the little guy.

Lending Club was founded by Renaud Laplanche, a French native who worked as a New York securities lawyer before launching database search firm MatchPoint. Laplanche whipped out his plastic (and paid 18% annual interest) to cover the cost of computers and furniture early on. When he later related this war story to friends, some said they would have happily lent him money on less onerous terms.

The service launched in May 2007 as one of Facebook’s first applications, which attracted buzz and young borrowers with scanty credit histories to mine. Laplanche shifted gears and primed the pump with $12 million from angel investors and Silicon Valley Bank.

These days Lending Club is one of a handful of peer-to-peer lenders filling a gap created by tightfisted bankers.

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