Since 2007, the credit market has contracted considerably and it’s not as easy to get 5000 dollar loans as it used to be. Where 4 years ago banks were willing to provide customers with substantial loans of anywhere from $5,000 to over $50,000 for a car loan or as a home mortgage, today the stringent credit requirements have made it so that only those who can afford to pay in cash can qualify for a loan.
The reality of a credit market that’s all but closed to the average borrower has made it difficult for anyone with a blemish on his or her credit report to obtain a loan. While the market may have opened up for larger businesses, individuals looking for $5,000 loans are better offer considering the wide range of alternative options that are available.
In lieu of a traditional bank, those looking for a $5,000 loan can visit Prosper.com. Prosper.com is a “peer-to-peer lending” corporation that connects borrowers to investors; there’s absolutely no bank involved. With borrower rates starting at just 5.65%, Prosper.com offers loans for a wide range of purposes, from home renovations to tax expenses.
In terms of the credit requirement, loan options are available for those with excellent credit as well as those with a poor rating. For those with the latter, note that the rate for borrowers can go as high as 31%. The rates are determined by several factors, including the economic and competitive environment and the risk of loss to investors. But because it is a peer-to-peer system, borrowers can set their own loan repayment plan.
To apply for a loan on Prosper.com, the process is quite simple. First you select the loan type, the amount and your credit rating. From there you must fill out some personal information for identity verification and credit check purposes. Borrowers will then be able to create a listing that provides both the desired loan amount and a description of the intended use of the loan to investors. Once verified, investors may choose to fund your loan and the money will be disbursed to you.
Additional peer-to-peer lending options include LendingClub.com and the London-based Zopa.com. With the latter, potential borrowers can get instant quotes on $5,000 loans without having to fill out extensive personal information questionnaires.
And then there’s Wikiloan.com. Though also a peer-to-peer lending site, the process of obtaining a loan through Wikiloans.com is slightly simpler than all the rest. Potential borrowers need only enter their desired loan amount, their desired interest rate and the desired loan duration to create a listing. In other words, the borrower sets all of the loan terms.
Once the information is entered, Wikiloans will generate an overview of the total loan cost. For example, a $5,000 loan with a 6% interest rate over 24 months will cost $221.60 per month with a one-time finance charge of $318.
If a borrower decides to go through with the loan, a listing will be created. The site offers several listing options, including the addition of a loan story or a YouTube video explaining the reason for the loan.
The inclusion of YouTube into the loan listing is what sets Wikiloans apart from its competitors. With the Wikinvite tool, borrowers can publish a loan listing to their social network accounts. Family, friends and coworkers can then view the information and choose to lend the money without the complications normally associated with lending a friend or family member money. Said complications are eliminated because by virtue of lending through Wikiloan, investors are entering into a binding agreement with borrowers whose terms are agreed upon by both parties before any money gets disbursed.
By focusing on the social aspect, Wikiloans offers friends and family a viable, secure way to lend money to one another without compromising a relationship.
Peer-to-peer lending is an excellent alternative to traditional banks for loan seekers. Not only are the credit requirements less stringent, borrowers can expect no hidden fees or unnecessary charges. It’s system built around the simple goal of connecting investors with borrowers without the bureaucratic hassle. So if you’re looking for a $5,000 loan, visit one of the sites mentioned here to get your money today.