I have lately seen adds for something called “peer to peer lending” which sounds like it would be a good thing to invest in, as there are minimal losses involved. However, the question is if there is an issue of ribis involved?
To cite a specific company the Lending Club www.lendingclub.com.
Answer:
According to most authorities, there would be no prohibition in investing in such a company, provided that the owners of the company (or the majority shareholders) are not Jewish. For further details, see the article on the site entitled “Kosher Shareholding.”
This answer appears to be misunderstanding the question. Peer to Peer lending does not involve an ownership stake or shareholding in the lending company; it involves direct loans to individuals enabled and processed by the given lending company (in this case Lending Club). See their website for a full understanding of the model.
I understand.
Concerning the “lending club,” which as you note involves personal loans, please see here: https://dinonline.org/2013/01/15/participation-in-lending-club/.
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