How to Be A Lender

There’s a passage in the Bible at Deuteronomy 15, verses 7 thru 8, that talks about how we should lend to the unfortunate.

“If there be among you a poor man of one of thy brethren within any of thy gates in thy land which the LORD thy God giveth thee, thou shalt not harden thine heart, nor shut thine hand from thy poor brother:

But thou shalt open thine hand wide unto him, and shalt surely lend him sufficient for his need, in that which he wanteth.”

The rich rule over the poor, and the borrower is servant to the lender. However, we must humble ourselves to consider that God is not a respecter of persons. It will be the same for priest as for people, for master as for servant, for mistress as for maid, for seller as for buyer, for borrower as for lender, for debtor as for creditor.

I’ve learned good lessons on how to be a good borrower, so let’s look at being a lender…

How to Be A Lender

Before jumping in to a Lending Club to earn steady returns with social lending, take sometime to make sure you’re going to get a good return for your money.  Its even more important to ensure that your borrowers have good credit.

There should be a process in place that will verify borrower identities, assign loan grades and interest rates, and process monthly payments.  The Lending Club is a great place to start.  The lending process been noted in The New York Times and reviewed by Harvard as well established company with plenty of cash available for small business at low rates.

The best part about being a lender is knowing that you are helping people make a difference with their financial goals.