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.
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. :)
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.
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?