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Prosper Lending and Investments is an excellent alternative to traditional online loans and investing opportunities. This company relies on peer-to-peer lending and connects borrowers directly with individuals that have the money to invest. About the Program Prosper finds investors that can invest up to $25,000 for a single borrower. Investors may search on Prosper's website daily to view these investment opportunities. A listing remains active for 14 days while investors search for loans they would prefer to select. If the client's loan is not funded in 14 days, they can resubmit their request for online loans. Investors receive significant returns from the online loans, and borrowers have an opportunity to receive a loan directly from a person that can improve their financial situation. How It Works Borrowers apply for online loans by selecting a loan amount and purpose for the loan. The customized loan is listed on the website for investors to review. Loans are usually arranged for payment over the course of three years. After reviewing the online loans, investors will select a loan that they choose to invest in. The borrower will receive the requested amount deposited into their account minus the closing fees for the loan. Borrowers will be responsible for making monthly payments directly to the investor’s account. If the payment is late by 15 or more days, a late payment fee of 5% or $15 will be assessed. The late fees will be given to the lenders. Prosper does not retain late fees. A returned check will also be assessed a late fee of $15. The fees charged to the borrowers and lenders are easy to understand. The company lists the fees so that borrowers will know what to expect. Both the closing fees and the interest rates are contingent upon the borrower’s credit score. There are no fees to make use of the site or to post online loans. Therefore, anyone can request a loan or fund a loan free of charge. Cost and Incentives The costs vary based upon whether you are the lender or the borrower. A few examples of lenders and borrowers fees will be listed below: Borrower Fees: Borrowers with excellent credit will have low percentage interest rates and closing fees. For instance, a borrower with an 800 credit score or categorized in the AA category may be charged 0.5% closing fees. Whereas someone with a 680 credit score may be charged 4.5% for closing costs and receive a loan interest rate above 20%. Alternatively, a client with a Prosper Rating of A or B may request online loans in the amount of $5000. The borrower may be charged a $150 closing fee for the loan. The client may have $4850 deposited into their accounts for use. The APR on the loan may be 20.20% making the borrower’s monthly payment $180.74. Lenders Fees: Lenders are charged a nominal amount for every three year loan that they accept. For instance, investors may be responsible for paying a 1% annual servicing fee. The fee is based upon the outstanding loan principal. For example, if the lender assumes a $5000 loan with a 10% interest rate, the lender would then pay $80.70 servicing fee over the full three year length. The servicing fee will vary each month based upon the interest rate. The fee is also dependent upon the length of the loan. Collection Agency Fees: If the loan payment is more than a month late, a professional collection agency will be assigned. The fees will be based upon the fee structure of the collection agency. However, fees will only be charged to the lender if the funds are recovered. Incentives: Special promotions for online loans are often sent out by email. Promotions and incentives may also be found on the company’s Facebook page or Twitter feed. Check these options to find deals on online loans, as well as, investor news and blog posts. For further information regarding online loans, please visit MyReviewsNow.net Shop At Home.
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