If you need to borrow money for your home, car, business, or any
reason at all, consider going down a less traditional route with a peer
to peer lending company that will help you fund your personal loans.
Prosper loans is a lot like a social networking website with a financial
twist. People post loan requests, and other people act as lenders. The
lenders bid to fund the loans and profit off the interest. No matter
what kind of credit score you have, you can apply for a loan from the
Prosper community. Learn more about this modern way to get funding.
Overview of Prosper
loanupThe prime function of Prosper is just that: everyone can prosper through receiving money from a loan or from the interest earned on a loan. Borrowers choose a loan amount with a maximum interest rate they would be willing to pay, write an accompanying story that explains their need for a loan and why they are a good risk, and then they post it on the auction website. Lenders browse the listings and choose which they want to bid on with the interest rate that they would be willing to accept. After the auction ends, Prosper pays out the loan with the winning bidders who offer the lowest interest rate. The loans can be any amount up to 25 thousand dollars. Each loan is a three year fully amortized loans with a fixed interest rate.
Benefits for Borrowers and Lenders
People with good credit have an opportunity to borrow money with Prosper loans at a rate lower than what the banks are offering. Those with less than stellar credit, or a really low credit score, can get a loan by sharing a convincing story. They need to express convincingly what purpose the money would serve and explain how they will be able to successfully repay the loan over the three year period. Lenders benefit from connecting with the people they are lending to and getting to decide how much risk they want to take on based on what they read.
Drawbacks for Borrowers and Lenders
loanup There is no drawback or risk for borrowers when they receive a loan. Lenders should keep in mind that the only indicator of whether or not a borrower is going to pay back their loan is the credit score that is provided to them from the borrower to Prosper Loans. The loans themselves are unsecured. For borrowers, there is no drawback. Lenders risk late payment or default. However, Prosper Loans will use a collection agency to help lenders if there is an issue with payback, and borrowers with high credit scores will usually do what they can to protect their favorable status.
Overview of Prosper
loanupThe prime function of Prosper is just that: everyone can prosper through receiving money from a loan or from the interest earned on a loan. Borrowers choose a loan amount with a maximum interest rate they would be willing to pay, write an accompanying story that explains their need for a loan and why they are a good risk, and then they post it on the auction website. Lenders browse the listings and choose which they want to bid on with the interest rate that they would be willing to accept. After the auction ends, Prosper pays out the loan with the winning bidders who offer the lowest interest rate. The loans can be any amount up to 25 thousand dollars. Each loan is a three year fully amortized loans with a fixed interest rate.
Benefits for Borrowers and Lenders
People with good credit have an opportunity to borrow money with Prosper loans at a rate lower than what the banks are offering. Those with less than stellar credit, or a really low credit score, can get a loan by sharing a convincing story. They need to express convincingly what purpose the money would serve and explain how they will be able to successfully repay the loan over the three year period. Lenders benefit from connecting with the people they are lending to and getting to decide how much risk they want to take on based on what they read.
Drawbacks for Borrowers and Lenders
loanup There is no drawback or risk for borrowers when they receive a loan. Lenders should keep in mind that the only indicator of whether or not a borrower is going to pay back their loan is the credit score that is provided to them from the borrower to Prosper Loans. The loans themselves are unsecured. For borrowers, there is no drawback. Lenders risk late payment or default. However, Prosper Loans will use a collection agency to help lenders if there is an issue with payback, and borrowers with high credit scores will usually do what they can to protect their favorable status.