out of 5 stars by
AppAppeal Editor
Prosper is a peer to peer lending website, this makes getting a loan much easier. Instead of having to go to a bank with your tail between your legs and begging for a loan you can go online and find real human beings. Nobody likes dealing with huge corporate businesses to secure loans, and this is why sites like prosper are becoming so popular. Prosper works like an online auction, you specify how much you need to borrow, and set the interest rate you are looking for. Lenders can then bid a proportion of your loan; they can invest from $50 to $25,000 in you at a specified interest rate. This is much better than lending from a bank, especially if you have poor credit ratings. The lenders can take your personal history into account and treat you like an individual. Groups can be formed to get lower interest rates as they are more trusted. Borrowers can borrow up to $25,000 from the site, and can specify their maximum interest rate. Prosper then selects the amounts with the lowest interest rates and then combines them together. Prosper deals with all the administration and collects the repayments from you and pays back to the lenders. Prosper charges a small fee to borrowers of 1-2%, and an annual fee of 0.5-1% is charged to lenders.
Prosper was launched in February 2006; however they are not currently accepting new loan applications because they are waiting to register with the SEC.
Prosper is an online lending platform which means you never have to visit your bank again to discuss your financial position. You do have to show that you are trustworthy, but this is much easier to a group of real people rather than to an automated robot. Also because the amounts of money lent by each individual person are very low it’s much more likely that they will bear the risk with a much lower interest rate. Losing $50 isn’t like losing $10000.
Using prosper is very easy, you just need to register for an account and then assuming they are accepting new loan requests you can post your request. Potential lenders will inspect your proposal and work out how trustworthy you are. If they think you can be trusted then they will lend you the money. Of course there is the possibility that someone will default on a loan, but because the lenders are lending fairly small amounts of money it shouldn’t really matter.
Registering for an account with prosper is very easy. You just need to click join now, you will then be asked what you want the loan for and how much you are looking for. At the moment they are not able to find personal loans so direct you to another bank. However when it is working you will be able to create a proposal which will make it easier for you to source the loan you want.
It is free to join and use Prosper, you have to pay a 1-2% fee as a borrower when taking out the loan, and lenders will also pay a yearly service fee of between 0.5 and 1%.
Prosper is good for anyone wanting to borrow money without visiting a bank. Prosper will be able to give you the money to make your dreams come true.
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