Where can individuals make private money loans to others?


Quick Answer

Peer-to-peer loan websites allow accredited investors to lend their own money and make a profit from borrowers' interest payments, according to Yahoo Finance. Some of the most popular peer-to-peer finance websites include Lending Club and Prosper.

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Full Answer

Lending Club allows investors from approved states to join their peer-to-peer lending network. Average returns on invested capital range from 5 to 10 percent per year, as reported by LendingMemo.com. Prosper investors typically earn between 5 and 9.5 percent per year. Newer peer-to-peer lending websites include Peerform.com and P2PCredit.com. The Wall Street Journal advises that peer-to-peer investing carries some risk and is best combined with a well-rounded investment portfolio.

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