A friend recently started giving loans through this site, and I am intrigued by it. (Not sure if I can post a link, but I'll try and see if it's removed! Personal & Small Business Loans at Prosper.com - the P2P Lending Marketplace. - Prosper)

The premise seems to be that you post your story, the amount you need, and the interest rate you are willing to pay. She told me the site does a credit check, and handles all the money. You never are in direct contact with the borrower unless you both choose. The site also handles delinquencies. You can lend as much or as little as you choose, and can choose what loans you wish to fund.

Browsing it seems an interesting concept, though most of the interest rates look pretty high to me.

Opinions? Experiences?