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Wednesday, March 15, 2006

Final Propser Loan Won

The final loan bid I had outstanding, for $200 @ 20.75%, was accepted today. This means I now have all of my $500 loan amount invested across four loans. My average interest rate is 17.82%, or 17.32% after Prosper's fees.

There must be some sort of strange rounding errors going on because my account shows Principal Loaned = $500, Principal Repaid, Interest & Fees Paid, and Service Fees all equal to $0.00, yet my total Loan Value is shown as $500.04.

Anyway, I'm glad all my funds are now loaned out. The final loan actually was scheduled to end in over a week, but it looks like the borrower closed it once she had enough bids to fund the loan. She could have left the bidding open to see if she could get a lower rate.

All in all, it's been a fairly good experience so far. If you are considering lending through Prosper, I suggest reading through the Borrowing help screens first, so you understand the process from the borrower's point of view. I didn't do this until later and many of my questions would have been answered had I read it sooner.

9 comments:

Jon said...

With the system designed to allow upwards of 500 or so lenders to fund a 25k loan, I suppose its possible there are rounding issues you'll encounter...

However, the loan value isn't just the principal balance; it reflects the total value of the loan which includes any unpaid principal, interest and late fees.

Interest accrues daily, so I'm guessing the extra 4 cents comes from that.

Shaun said...

I'm pretty sure that's what it is. I'm now at a loan value of $500.17.

jon said...

Ah, the beauty of interest...

A few more days and you can treat me to the $1 menu.

Anonymous said...

Shaun,

I was wondering how to get into your group on Prosper. I am considering lending some money. I am on Richdad.com as Richard4009. Can you email me at richard4009@yahoo.com? I searched your blog, couldn't find a contact email. And my search on richdad came up empty, I guess I was using the wrong name. Thanks.

Shaun said...

FYI, I'm not the group leader, so technically, it's not MY group. The group name is named WealthBuilders.

Shaun said...

Actually, Jon, I can treat you now.. My first payment of $7.51 has been collected.

Mark said...

I'm the group leader for WealthBuilders on Prosper and want to encourage you to join my group, which embraces the principles of Rich Dad, Poor Dad. As an added benefit, I'm planning to produce a free quarterly financial newsletter for members of my group. You can register for Prosper at www.prosper.com and join my group WealthBuilders (remember, it's one word) without being obligated to lend or borrow. Please feel free to contact me if you have questions or comments at MarkCalvey@aol.com or at my Prosper screen name, WealthBuilder. Thank you.

Shaun said...

Thanks for the invite Mark. I've been a member of your group for almost a month now :-) My Prosper screen name is Shaun. I've also already loaned money to a member of our group.

Anonymous said...

Hi Shaun, this is cdj167 from RD.

Saw that you're into prosper, and I read every single page & link on the prosper T&C.

I guess it's a wait and see now since you're in for one month as of today, especially since prosper is new and by you & others minimizing the individual investment amounts it also minimizes the risk.

I did notice some groups are only doing high interest loans ... wow, that blew me a way

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