Peer-to-peer lending surges in US

New York

JOSH Smith, a 30-year-old blogger on finance, was in the midst of a career change in 2009 when he sought to refinance US$8,000 in credit card debt. "At the time, I was making the transition to freelance," he said. "When I asked the bank, they did not want to lend me the money because I was leaving a permanent position for freelance."

Mr Smith turned to the online marketplace Lending Club and had a deal within six days. "Getting a peer-to-peer loan was incredibly simple," he told AFP.