GreenNote is an innovative new company that has been created to help students obtain loans for education via social networking rather than through traditional lending methods.
Using the GreenNote online platform, students connect with their social network—friends, family, friends of family, community leaders and others—to ask for small student loans. GreenNote helps formalize everything into legally binding loans and handles all the details from loan documentation through repayment.
It competes with online lending communites Zopa and Prosper, which a person needs to be working a 40+ hour week in order to lend from.
The benefits are significant. Students gain access to low-cost loans, currently at 6.8% compared to private lending alternatives that typically range from 8.5% to 20%. The lenders, individuals in the social network, also earn a return on their money while helping a student get an education.
GreenNote generates revenue by collecting a one-time documentation fee from the students and a small management fee from the lenders.
Last updated 28 Jan 2010