5 alternatives to borrowing from banks

Like Prosper, Loanio takes an auction-like approach to peer-to-peer lending. But the site says it helps protect lenders by making low-credit borrowers enlist co-signers. The New York-based company makes money from loan fees as well as optional premium services for lenders seeking additional verification about a borrower's tax returns, employment and income. Since Loanio went online in October, 120 borrowers have used the site to request loans, roughly 10% of which have been granted, according to the company.

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