Social lending - what's it all about?

Banking conditions aren't particularly inviting for savers or borrowers at the moment, with miserly rates on savings and sky-high rates on loans causing both parties to lose out.

So it's little wonder that social lending – a practice where individuals lend money to each other, sidestepping the banks – is booming.

With lenders receiving a higher rate of return than from a regular savings account, and borrowers securing loans at a lower interest rate than that offered by the banks – it seems like a good idea all round.