Looks like Prosper is getting some competition: CNN money reports that the UK-based P2P lending site Zopa is getting ready for it's US launch. From the article:

"The draw: better rates than traditional banks offer. Borrowers can take out loans for as much as $25,000 and enjoy rates as low as 5 percent. And anyone with anywhere from $100 to $100,000 to spare can lend money, and earn returns better than most high-yield savings accounts and CDs."

One big difference between Zopa and Prosper seems to be that Zopa actually takes your credit score into account before it approves a loan request, whereas Prosper leaves the risk-assesment to its members.

Zopa is scheduled to launch in California soon and then eventually expand to the rest of the US. It will be interesting to see how these two sites compete with each other.

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