Quick Prosper Update |
3 Comments |
I had been steadily feeding money into Prosper for a couple of weeks now. Though, I've been getting what I feel are going to be solid loans, it's been even longer than usual for Prosper to make the loans active. It had to have been more than week with 4 loans all pending. Finally two of them went through last night, but I found two more, so I continue to have a high "pending loan" balance. Things could be worse.
As for the account itself, I have nearly $2000 in active loans. I'll probably be close to $2500 in a week. For the last 6 months, I have $67 in interest. Considering that much of the time I had under $500 in there, I'm happy with the performance. I do have a loan that's 2 months late, so I may lose the $46 remaining on that. That would be quite damaging to the gains, but I'm comfortbale with the risk/reward.
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What kind of spread does Prosper.com keep? For example, if the borrower has to pay 10% interest on the loan, what does the lender get to keep? Are there additional fees for the lender? Also, do the payments go directly to your bank account? Or a paypal type account where you have to pay fees to withdraw?
Sorry for all the questions. :)
Joe
http://www.StingyFinance.com
Not a problem. Prosper keeps 1% from the borrower and 0.5% from the lender I believe. There are no additional fees for the lender and as that comes from the loan itself it doesn’t feel like a fee.
The payments stay in the Prosper account like Paypal. You can’t really do anything with these funds except lend them out again or transfer them back to a bank account. You earn no interest on this money, so it’s best to keep as little money in there as possible.
Hey LazyMan,
Thanks for the reply. So they keep 1.5% of the posted interest. Interesting, they will need a large loan balance to start making some real money. Maybe they’ll start loaning out money themselves. :)
Question, do they charge fees for withdrawing money?
Joe