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.
Wednesday, March 15, 2006
Final Propser Loan Won
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8 comments:
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.
I'm pretty sure that's what it is. I'm now at a loan value of $500.17.
Ah, the beauty of interest...
A few more days and you can treat me to the $1 menu.
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.
FYI, I'm not the group leader, so technically, it's not MY group. The group name is named WealthBuilders.
Actually, Jon, I can treat you now.. My first payment of $7.51 has been collected.
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.
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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