It seems as though in the technological age, there is nothing you cannot do online.

Now you can borrow money from an online marketplace without having to go through a bank.

Launched in February, IOU Central featured person-to-person lending. Here anyone needing a loan can post it to the web site’s loan listings board and wait for the lenders to line up, so to speak.

“At its core, IOU Central empowers individuals to be their own banker by giving them a platform to lend money to whomever they want. It's no longer just your local bank that can earn interest on your deposited money," said Phil Marleau, Chief Executive Officer and Founder of IOU Central.

Here is how the system works. To post you loan request you must include your credit score, amount to borrow, terms of the loan, and the most you are willing to pay. Additional information such as income can also be included.

"It also gives borrowers an alternative source of funds at competitive rates with no lengthy procedures to go through as are currently required at many traditional financial institutions," said Marleau.

After the request is posted, potential lenders bid on the loan by stating the best terms they are willing to offer. At the end the bids with the lowest rates are combined and become one single loan.

At this point, IOU Central is responsible for transferring money from borrowers to lenders on a monthly basis, until the loan is re-paid.

Borrowers are allowed to ask for loans between $1,000 and $25,000, lenders, however, can bid as little as $25. The difference according to IOU is to allow the lenders to lower risk, by bidding a little for a lot of different loans.

IOU Central can be found at: http://www.ioucentral.ca.

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