Would you give (or take) a small loan to/from a complete stranger on the internet?

My name is URL

There's a forum on Reddit in which people who need small, short term loans ask strangers for them.

The people lending money make a bit with 'interest' that is paid back on top of what they lend.

The thing is that those requesting the loan usually get to decide on what interest they pay back.

It's very interesting imo. I came across the reddit by chance a while back and have been keeping my eye on it since. 90% of borrowers appear to repay the money lent + interest within the agreed upon time.

Some are late but still repay.. others are chancers who just take off and never even try to pay the money back.

Compared to recognised and legal money 'lenders' it seems like a bargain for anyone that actually needs a small amount of money for a very short term. Obviously there is fcuk all protection for anyone involved in these agreements, and it's very high risk for those lending.. but for those that do it genuinely does appear to be fruitful.

The practice, known as 'peer to peer lending' is briefly mentioned on the Central Bank website.. it says it's well established in Ireland but I hadn't heard of it before I seen it on Reddit.

http://www.centralbank.ie/press-area/press-releases/Pages/ConsumerNoticeCrowdfunding.aspx

So would you lend to or borrow from a complete stranger under such circumstances?

Here's a link to the subreddit for those curious - http://www.reddit.com/r/Loans/new/

Annasopra

No

Way too risky

Hotfail.com

You'd have to be a complete fool imo.

Would you take a loan off a stranger in real life?

fussyonion

I've seen these ads on Gumtree, too, and it's amazing how much people want.

"I need €10,000 by tomorrow 'cos my car broke down and I need a new one."

Merrion

Not to an anonymous individual, no - but definitely to a small start up like a market stall or similar.

Hotfail.com

I guarantee thejournal will have an article on this during the week.

My name is URL

Joeytheparrot wrote: »

No

Way too risky

That's my thought on it too, but seriously.. after lurking on the reddit for a few weeks and observing who lends money; they use a lot of diligence when doing so.

They'll usually only lend to people who are established on the site. They can check post histories, ask for personal details, social media pages, pay-slips etc.

It's probably more details than most banks ask for.

Personally I'd say it's very risky indeed.. yet I'm almost tempted to try doing it =p

Tail Docker

I'd think bad these days of borrowing it to people I know well, let alone strangers. The phrase "ain't never seeing that again" springs to mind.

The_Valeyard

id put this in the same category as 'taking sweets from a stranger'

My name is URL

The_Valeyard wrote: »

id put this in the same category as 'taking sweets from a stranger'

You got some sweets?

The_Valeyard

My name is URL wrote: »

You got some sweets?

Yes, they are in the back of my black van over there, the one with the tinted windows.

Awkward Badger

My name is URL wrote: »

You got some sweets?

I'll give ya half a twix if you give me back a full one on Friday.

Edit: Sorry its gone.

Gone West

I'd rather lend money to a perfect stranger than to friends or family tbh.

fussyonion

That's true, too. Lending to friends and family never ends well.

I know a fella who owes his brother €3000 but he won't give it back cos he can't afford to.
Yet he can afford to have four children, a fancy house and drinks every night of the week.

You're everyone's friend once you lend, but you're the enemy when you want it back.

Lou.m

My name is URL wrote: »

There's a forum on Reddit in which people who need small, short term loans ask strangers for them.

The people lending money make a bit with 'interest' that is paid back on top of what they lend.

The thing is that those requesting the loan usually get to decide on what interest they pay back.

It's very interesting imo. I came across the reddit by chance a while back and have been keeping my eye on it since. 90% of borrowers appear to repay the money lent + interest within the agreed upon time.

Some are late but still repay.. others are chancers who just take off and never even try to pay the money back.

Compared to recognised and legal money 'lenders' it seems like a bargain for anyone that actually needs a small amount of money for a very short term. Obviously there is fcuk all protection for anyone involved in these agreements, and it's very high risk for those lending.. but for those that do it genuinely does appear to be fruitful.

The practice, known as 'peer to peer lending' is briefly mentioned on the Central Bank website.. it says it's well established in Ireland but I hadn't heard of it before I seen it on Reddit.

http://www.centralbank.ie/press-area/press-releases/Pages/ConsumerNoticeCrowdfunding.aspx

So would you lend to or borrow from a complete stranger under such circumstances?

Here's a link to the subreddit for those curious - http://www.reddit.com/r/Loans/new/

I would never ever take a loan from anyone other than a bonafide financial institution. They could suddenly need it back and come for you.

Anyway I am determined NEVER to take any kind of loan out again ever. I am debt free now and loving it :cool:

If a strange walked up to you and one of the first things they said to you was 'hey lend me money' what would you think?

JoseJones

I wouldn't have much of a problem giving out loans like that. If you are diligent and careful but also only lend money you can afford to lose then you shouldn't have a problem. If 90% are repaid on time and with interest then any money you lose from unpaid loans you would cover eventually from repaid loans.

Actually this is a really cool idea, I am thinking about lending some people money now too!

fussyonion

JoseJones wrote: »

I wouldn't have much of a problem giving out loans like that. If you are diligent and careful but also only lend money you can afford to lose then you shouldn't have a problem. If 90% are repaid on time and with interest then any money you lose from unpaid loans you would cover eventually from repaid loans.

Actually this is a really cool idea, I am thinking about lending some people money now too!

Good cos my car broke down and I need 10k by tomorrow.

JoseJones

fussyonion wrote: »

Good cos my car broke down and I need 10k by tomorrow.

Sorry I can't afford to lose 10k

the groutch

JoseJones wrote: »

If 90% are repaid on time and with interest then any money you lose from unpaid loans you would cover eventually from repaid loans.

To quote Dr Perry Cox: "Statistics mean nothing to the individual, not a damn thing".

House of Blaze

I don't see the big deal.

Sure it's like asking would you buy something from a complete stranger but the existence of ebay / adverts.ie or whatever shows it can work.

A self regulating feedback or rating type system would be the same idea here.

I actually proposed creating a website with this idea to some classmates of mine in college about 3 years ago and was convinced there would be a market for it.

I knew it!

Arthur Beesley

JoseJones wrote: »

If 90% are repaid on time and with interest then any money you lose from unpaid loans you would cover eventually from repaid loans.

Eventually? Way to sell it. Sign me up to maybe break even in be long term.

JoseJones

Arthur Beesley wrote: »

Eventually? Way to sell it. Sign me up to maybe break even in be long term.

Why would I want to sell it to you? You're looking at it purely as a way of making money. If making money is your only intention I would say it's a pretty stupid investment.

Where do you invest your money anyway?

My name is URL

JoseJones wrote: »

Why would I want to sell it to you? You're looking at it purely as a way of making money. If making money is your only intention I would say it's a pretty stupid investment.

Where do you invest your money anyway?

Never mind him.. he pays directly to the toilet

Arthur Beesley

JoseJones wrote: »

Why would I want to sell it to you? You're looking at it purely as a way of making money. If making money is your only intention I would say it's a pretty stupid investment.

Where do you invest your money anyway?

Mattresses.

macplato

I have had a lot of good experiences lending to and borrowing from friends, large sums too, so I guess my view on this is somewhat tinted. I would consider lending money to a stranger, yeah, but only so much as I could afford to lose. In fact, lending it, I'd have to be relaxed and ok about never getting the money back. I can imagine doing that, yeah.

On the other hand, if I was really stuck for money, I would only borrow if I had a 100% certainty that I'd be able to repay it very quickly.

bnt

You can lend if you want to, via e.g. prosper.com or others:

Prosper is the market leader in peer-to-peer lending—a popular alternative to traditional loans and investing options. We cut out the middleman to connect people who need money with those who have money to invest...so everyone prospers!

If you want to borrow money, you have to create a prospectus that makes your business case for why someone should lend to you.

B.A._Baracus

Hotfail.com wrote: »

You'd have to be a complete fool imo.

I would agree. But would you not pity him?

Ficheall

I'd lend a small amount of money to some of the hot female regs on boards.

Ditch

Personally, I think it's a lovely idea. Random acts of kindness are great.

Anyway, better to sling €30.00 ye not going to die without, helping some poor soul out of a fix. Rather than run a marathon. Raise €300.00. Give it to a major charity only to hear they've just ordered a €3,000.000 new HQ with a parking space reserved for their CEO's Roller :rolleyes:



Here's a cracking little anecdote though:

I was in a taxi one time. We had another fare in the back. I think he might have flagged the driver down? What ever. This guy's reeling drunk and gets on his mobile, straight away.

The conversation went like this .....

Brrp! Brrrp! Brrp ..... Hullo?

Ah! Padraigh?

Yes? This is Padraigh. Who's this?

Ah. Padraigh, this is Noel.

Noel ....? Wh ..... How did you get this number?

We shared a taxi, the other night. You, ye mate and me. We exchanged numbers.

Oh ..... Erm ..... So, what can I do for ye, Noel ?

I was just wondering; Could ye sort me out ....?

WHAT?!? NOOOOOOOO!!!!!!!!!!!!

Oh?! That's really not what I was hoping to hear .....

Look; Please don't Ever call this number again ....!



I was just Waiting for the tap on the shoulder; " Excuse me ..... Could I have ye number ....? "



Oh and, yes; On several occasions, I've had people who knew me only as an internet handle, entrust me with €100's of their cold, hard cash. Completely without hesitation and simply on learning that I needed it.

Equally, I've sent such strangers €100's, even €K's in advance payment for goods and services. Knowing full well they were deep inside another country and I couldn't possibly get revenge, if they just turned round and flipped me off.

No one ever did. Nor would I rip anyone off. We're basically good. Aren't we? It's nice to be nice

Mr. G

Ehh no way