Social lending the next Web 2.0 phenomenon

The basic idea with social lending is that when you need money, others will pool their funds together and lend them to you at x% interest rate. Prosper uses your credit score to determine your risk rate and then based on that risk rate you bid for the loan with your terms. What makes Zopa & Prosper popular is the "social" aspect; that is you can post your story about why you need the money. Jane described a woman who wanted a boob job and posted her story and was able to receive the funding even when every bank she tried turned her down. Jane described Prosper as: eBay + PayPal + Match.com.