Community based financing seems to be giving customers much more than traditional lending institutions. For instance, 19 years old Mauk, a construction worker could not get a $4,100 loan from traditional sources when 26 of his ‘peers’ on his social network got together to give him the cash at an interest of 9.25%. This was all done through the Lending Club, having entered a partnership with WebBank, an industrial bank under whose loan charter, the former’s loans are regulated. So who all stand to gain? For starters, the Lending Club collects a 1% servicing fee on all loans. Borrowers like Mauk get their money with lesser hassles, thanks to a certain amount of credibility that they have in the community. And lenders, earn a decent sum while harboring the feeling of being able to help someone in their community. More on this here.