I learned about peer lending relatively early on in my financial life, as I was looking for ways to headge against having only one type of investment as well as earn the best possible returns on those investments. Eventually I came across Lending Club and after a fair amount of testing the waters, I now have a substantial portion of my investments held in notes from the platform (more on the terminology briefly). At its simplest, peer lending is a way for individual investors to lend money to individual borrowers with a minimal amount of effort and dealings with middle-men. As an investor, you're given the opportunity to select from thousands of loan applications to partially fund based on basic information supplied by the borrower, such as loan purpose and credit history. Tens or hundreds of other lenders do the same thing, and eventually the loan is funded and all investors receive interest over its lifetime of either 3 or 5 years. Executed properly, peer lending can be an excellent addition to any investment portfolio.