Prosper.com -
Propser.com
is an online auction site where
people can lend money directly to each other. Borrowers set the
maximum rate they wish to pay and lenders set the minimum rate
they want.
Prosper matches borrowers with
lenders and manages loan repayment. Prosper Marketplace was
launched on February 13th, 2006 by Chris Larsen.
The idea for the service is derived from village banking concepts,
such as rotating savings and credit associations (ROSCAs).
The way Prosper works is intuitive to people who have used eBay. |
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Prosper.com can be a way for people with bad credit
to get financing and borrow money.
Loans are unsecured and the risk is split between many
lenders.
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Borrowing through
PROSPER.COM - PROPSER.COM
Even if you have bad
credit you can borrow money through prosper.com.
People who want a loan of up to
$25,000, for whatever purpose they state, put it up for bid at a
maximum interest rate they're willing to pay. Although they can remain
anonymous to everyone but Prosper.com and regulatory
authorities, they must submit to having their credit record checked
and their credit grades - determined from their so-called
FICO credit scores - displayed on
their listing. They also can provide their annual income, so a debt
ratio can be determined and also displayed.
Instead of listing and bidding on items,
people list and bid on loans using Prosper.com's online
auction platform.
Prosper.com generates revenue by
collecting a one-time 1% fee on funded loans from borrowers,
and assessing a 0.5% annual loan servicing fee to lenders.
Sources: Wikipedia, web sites
snippets |
