Better Than A Payday Loan - place to get a personal loan
68About Prosper Unsecured Loans
One of the quickest ways to optain a personal loan is through the (quote) "ebay of social finance" - Prosper. Prosper is a place where folks may lend money to strangers. Here's how it works:
A borrower signs up at Prosper.com, follows the instructions and submits a auction request to lenders. The lenders review the information provided and ask questions or place bids on your auction. Lowest interest rate wins!
Depending on your credit rating and size of your loan there may be 95 to 275 bidders fighting for a piece of your loan. Lowest money bid accepted is $50 US Dollars. At this time Prosper is open to US residents only.
Watch for more information on personal loans and social networks....
My Personal Experience
My experience as a lender with Prosper has been positive. I focus on families and individuals with AA to B credit rating that are eliminating their high (+20%) credit card debt. The largest exposure - $100 on an individual loan (not much). I don't concentrate the money on one loan. Average interest rate received: 12.5% - This changes constantly as people refinance or payoff their 3 year loan.
Currently, I avoid loans from people who live in areas with high foreclosure or weakness with employment. Example: Certain areas in California, the Phoenix Arizona metro, Detriot Michigan, and pockets of Florida. (Auto industry and real estate bubble)
Note: See update... the banking problem has hit home...
Update!
November 8, 2009
Prosper has been active for several months. Haven't checked my account...
May 22, 2009
Well, the California intrastate offering has been shutdown. It's back to ground zero with the SEC. We'll see what happens...
May 1, 2009
Prosper has returned in California after a six month wait. In case you we wondering, the SEC didn't like the practices of Prosper. I've posted another link in the comments section... the link goes to the letter from Prosper's CEO Chris Larsen and about the help from California regulators to resolve this situation. Also, Chris talks about the new Open Market program.
January 29, 2009
It looks like I'll have a default... a person from New Jersey is two months late. It appears he had been working in the automotive industry for seven years
Other Social Lending Sites
Virgin Money... owned by billionaire Richard Branson, this website concentrates on loans from friends and family. None of the Prosper type bidding. A new feature: Student payback program; extensive help to repay federal and private student loans.
Lending Club... each borrower is given lending club interest grade ranging from A1-7.37% (best) to G5-20.11% (worst). Also, there is a borrowing processing fee based on your LC grade.
Pertuity Direct... the short and sweet; borrowers submit their application to Pertuity. Pertuity Direct decides to accept (or reject) application, plus they calculate the interest rate. The loans are pooled into a SEC regulated mutual fund. Works like a bond fund.
Where Credit Still Flows
- Peer-to-Peer Lending: Problems and Promise
(source: businessweek) Just when it might have proved most useful, peer-to-peer lending has been severely hamstrung by the U.S. Securities & Exchange Commission's efforts to get a regulatory handle on the fledgling industry... - Where Credit Still Flows - Forbes.com
Social-lending sites pair willing lenders with cash-strapped borrowers. Here's how.
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Comments
Research Analyst... here's some more information about Prosper and the filing with securities authority.
More information: The Forbes article about Prosper, the SEC, and its "quite period"... plus detailed information on other social lending groups
Lending News
- Lloyds Banking Group admits it will miss business lending targetDaily Telegraph1 second ago
Lloyds Banking Group has admitted for the first time it will miss its lending target set by ministers as a condition of this year's taxpayer bail-out.
- BOJ Keeps Rate at 0.1% as It Assesses Lending Program (Update2)Bloomberg16 hours ago
Dec. 18 (Bloomberg) -- The Bank of Japan held interest rates near zero as policy makers watch the effect of a lending program adopted two weeks ago. Governor Masaaki Shirakawa and his colleagues held the benchmark overnight lending rate at 0.1 percent by a unanimous vote, the central bank said in a statement today in Tokyo.
- Mortgage lending falls 10%ShareCast8 hours ago
LONDON (SHARECAST) - Mortgage lending fell by 10% in November, in line with a seasonal slowdown in the housing market.
- Mortgage lending figures down 10%Channel 410 hours ago
Mortgage lending fell by 10% during November as the market suffered its traditional seasonal slowdown, figures have shown.
Research Analyst says:
16 months ago
Great, Thanks!