New sites arrange loans between individuals.

Circlelending.com, recently rebranded as Virgin Money, “facilitates loans between people who already trust each other.” Parents, for instance, can nail down precise terms with their children for a car loan. “For $99, CircleLending issues a legally binding promissory note and a repayment schedule.”

Lendingclub.com, in partnership with Facebook.com, links borrowers with lenders who share similar interests, alma maters, or other traits. “Group loyalty will ensure that borrowers will repay the money.” Anyway, that’s the idea. Source: The Boston Globe