A new peer-to-peer loan service called Lending Club was launched in May this year to users of the social networking website Facebook. It seems like a great business model. If you're a Facebook user, you place a request for a loan, then other Facebook users decide whether to lend you the money. The website says that they offer better rates that the banks, and that the loans are primarily used to finance purchases, pay for special events like weddings or holidays, and to refinance existing, high-interest debt. According to one source, Lending Club has just raised $10.26 million venture capital.
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