There is a new online peer-to-peer loan concept that is growing, and I think it's a great idea. (Via slashdot). Two new companies, Prosper and Zopa, are allowing people to ask the public to lend them money. Anyone can bid on lending the money, stating their own interest rate. Whoever offers the lowest interest rate gets to lend the money (and make the interest).

The result? A pure capitalist financial system that doesn't involve banks. Anyone can get a loan, and anyone can make money by lending money. Everyone benefits.

This also reminds me of Kiva, a web site that lets people lend money to those in developing countries. I think this is a great alternative to just donating money since it helps build up the economy in these countries. It's very cool to see the idea being extended to the rest of the world.

Update: Only people in the US can use Prosper, and only people in the UK can use Zopa. I hope they (or others) make this available to the rest of us (specifically, Canadians living in Germany)!