I’m not sure why I’m so late to the game on Prosper.com, a web site designed so that people who need loans can receive funds from ordinary people who are looking to make a return on their reserve cash.

The concept is pretty simple, people with money become parts of "mutual fund-like" loans to individuals who can’t or don’t want to go through a bank.  There is research that people are more likely to repay loans when they know there is a human behind it, and they know who those humans are. The lenders get good returns – 10-25% and their money is spread among a bunch of different loans so the risks are mitigated.   

My initial thought was that there is an issue where people who need the loans may not have the broadband or even Internet connection to take part, but that’s probably a subtle qualifying factor.  If you can’t find a broadband internet connection these days, I probably don’t want to loan money to you.