Latest update: 24/12/2008 

- financial crisis - Germany


Solving the credit crisis through social lending
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Taking a loan from the bank has never been easy for the self-employed. Social lending has become one of ways to help those facing a credit crisis. Employed individuals can lend or borrow money from each other over the internet.
By FRANCE 24 (text)

It has never been easy for the self-employed to get a loan from a bank. The situation is tougher due to current credit crisis as banks have become cautious about lending. Social lending has emerged as one of the solution to help those in need of loans.  Employed individuals can lend and borrow money from each over the internet.

 

The rate of interest varies according to the risk of the borrower. A self-employed who needed 12,000 euros within 2 weeks, offered 13 %. He used the Smava service, Germany's largest social lending site. Potential borrowers post a listing, with what they want to buy, for how much and the interest rate they're prepared to offer. But why would anyone lend their savings to complete strangers?

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