Im back lending on Prosper.com and its changed over time. The eBay like style has gone away. Once the loan is funded the bidding stops. I do miss the auction style format but with the new instant fund stlye my money can start working faster. Also they have a progress bar with each listing telling the lender (note buyer) how far along the borrower is with submitting his or her paperwork. I find this to be a useful tip in deciding to lend to someone or not. If they are puctual with their paperwork hopefully they are with payments to.
As of today Prosper.com has
Based on the historical data you can expect to see defaults and will be similiar to the chart below.
So defaults are coming down and rate arent getting bid down. Theres still alot of money being loaned so I think this was a good move for Prosper.com and their model. I hope they are around for a while I really enjoy lending on the site.
As of today Prosper.com has
1,350,000members
$348,000,000 in personal loans funded
Thats a long way from where it all started in 2006. The person to person lending has been a positive experience for me. I have maintained a positive return even when not reinvesting my payments for over a year.
The types of loans offered has also changed since I have been away. Loans are now available in 1, 3, and 5 year options. See below chart for the new loan products.
| Prosper Rating | <=$4000 | $4,001 - $7,500 | $7,501 - $10,000 | $10,001 - $15,000 | >$15,000 |
|---|---|---|---|---|---|
| 1yr, 3yr, 5yr | 1yr, 3yr, 5yr | 1yr, 3yr, 5yr | 1yr, 3yr, 5yr | 1yr, 3yr, 5yr | |
| 1yr, 3yr, 5yr | 1yr, 3yr, 5yr | 1yr, 3yr, 5yr | 1yr, 3yr, 5yr | 1yr, 3yr, 5yr | |
| 1yr, 3yr, 5yr | 1yr, 3yr, 5yr | 1yr, 3yr, 5yr | 1yr, 3yr, 5yr | ||
| 1yr, 3yr, 5yr | 1yr, 3yr, 5yr | 1yr, 3yr, 5yr | 1yr, 3yr, 5yr | ||
| 1yr, 3yr, 5yr | 1yr, 3yr, 5yr | 1yr, 3yr, 5yr | 1yr, 3yr, 5yr | ||
| 1yr, 3yr, 5yr | |||||
| 3yr |
Based on the historical data you can expect to see defaults and will be similiar to the chart below.
| Prosper Rating | Estimated Avg. Annual Loss Rate** |
|---|---|
| 0.00-1.99% | |
| 2.00–3.99% | |
| 4.00–5.99% | |
| 6.00–8.99% | |
| 9.00–11.99% | |
| 12.00–14.99% | |
| ≥ 15.00% |
So defaults are coming down and rate arent getting bid down. Theres still alot of money being loaned so I think this was a good move for Prosper.com and their model. I hope they are around for a while I really enjoy lending on the site.
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