One of the first ideas that came to my mind when I first became interested in Bitcoin was it's applicability when the initial novelty wore off. I tried Cloud Mining, High Yield Investment Programs, and even "Doublers" to see if investing in Bitcoin was even applicable or possible. One of the more legitimate ways to earn interest I found was Peer-to-Peer Loaning. After at least 6 months I would like to share my findings.
My first stop was BTCJam.
Technically as shown in the picture above I still have Current Receivables but it's clear I'm loosing money.
I tried another website, Loanbase hoping.
Just about 70% of people repaid their loans. Even though I've lost money (on both sites) I still like the idea and I would love to see the concept payoff.
I didn't use exact parameters to invest however I believe the different Loan Gradings did help identify potential borrowers. Even then - some people just didn't pay.
I believe that the most profitable way to invest in these sites is extreme diversification and minimal amounts, credit history analysis, and gradings.
However for borrowers it can be useful avenue for micro-loans. Just please don't break the system.