Prosper update
I have one loan out with Prosper that I took out in December as an experiment. I lent the minimum amount of $50.00 to see what would happen. The borrower wanted the money for debt consolidation and had a B credit grade. (Although of course they borrowed more than $50; that was just my share.) The interest rate on the loan is 13.25%. It’s current, which means that I have earned $1.04 in interest so far after fees. (Of course a small amount of the principal has been repaid as well.)
Their web site says,
Your share of the borrower’s monthly payment will be deposited into your Prosper account. At that time, you can lend it out again or withdraw it to your bank account.
But since I only have $3.30 in my account so far, I can’t withdraw it until it reaches $25. That’s going to take a while since the loan amount is so small. I suppose one alternative would be to lend more money, so that the monthly repayment amounts of all the loans equal at least $25, but I’m not interested in doing that at this time.
I’m happy that my loan is being repaid, but not happy with the $25 minimum withdrawal amount. I’m not that unhappy though, since I already received and withdrew my $25 bonus for opening the account. All in all, I might consider investing more in the distant future, after my more standard investments are set.
Related Websites- Is The Time Right To Take Out A Personal Loan? Choosing the right time to take out a personal loan can be a difficult decision for many people. Sometimes, there are financial reasons that make...
- New Loan Funded — paying bills — $5,000 at 26.00% — D Credit — DTI 12% A new loan funded (paying bills â $5,000 at 26.00%). I participated via my new standing order: Low Amt, Low DTI â AF. Which is...
- Why Prosper.com is a great 3 year Rate Ladder. OK so first of all... Everyone has heard of a a CD Ladder, right? This is where you buy your CDs so that expire at...
February 15th, 2008 at 8:28 am
Good to hear that you’re getting paid and that is a good interest rate. Since you’re testing it out its a good start (especially if the person defaults – its only $50).
I think the minimums are simply there to keep Prospers transactions down. Each time a business makes some form of a transaction banks like to charge them for it so incurring a $0.50 fee for a $3.00 transaction is quite cost prohibitive.