Online loan sites bank on social networking

As bank credit policies have tightened in a wobbly economy, consumers have started to turn to a new breed of lender — their neighbors and other online “peers.”

Web sites like LendingClub.com and Prosper.com match people who have signed up to lend money with borrowers who need it. Even Richard Branson, Britain’s flamboyant billionaire entrepreneur, is getting into the game, purchasing startup Circle Lending and rebranding it Virgin Money.

“With peer-to-peer lending, you get a better deal for both lenders and borrowers,” said Renaud Laplanche, chief executive of Lending Club. “We provide the means for lenders and borrowers to meet online and exchange money at 10 to 20 percent. It’s better than the stock market for lenders.”

The venture-capital-backed startup in California made it possible for 19-year-old Trevor Mauk of Belton to buy a motorcycle. The same Web site is helping Kansas City Wizards customer relations manager Sam Pierron make a little cash through loans to those in need.