The Loan Arrangers

Several Web-based services offer individuals the chance to become lenders, with returns of 8%-12% or more. For borrowers, these services are lower-cost alternatives to credit card debt and unsecured bank loans.

Would-be borrowers must reveal what they're planning to use the money for and how much interest they are willing to pay. They also must agree to have their credit reports pulled and have key details revealed online.

Lenders can reduce their risk by spreading loans among several borrowers and looking for borrowers with relatively high credit scores.

Some Web sites that now bring lenders and borrowers together include prosper.com and lendingclub.com, and no doubt others will follow their lead.

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