Have you experienced lending money to your relatives or friends? We know the fact that it is not easy to recover your money. Most especially from people who are close to you, or a family to you. If you have the capacity to do lending business, why not try to Invest your money into a Peer to Peer lending. Give it a try, get to know Prosper.com. A leading lending platform for an investor.
This is a marketplace where lenders get access to lots of people who need to borrow money. And, this is through an online transaction.
What is Peer to Peer Lending?
Peer-to-peer lending is a form of raising funds. Through crowdfunding from people who want to invest money for people who need to borrow.
The borrower is listed after thorough deliberation and verification process. An electronic credit appraisal system that will automatically calculate the interest rates. It will be based on the personal and financial information provided by the borrowers.
Peer-to-peer lending is also known as P2P lending. It is a practice of offering an unsecured loan or lending money to individuals. Or small scale businesses through online services. As qualified by the lenders as borrowers.
Since this lending firm generally operates online. The overhead cost is minimal. And the services provided is cheaper compared to traditional financial institutions. Hence, the lenders will earn higher returns. Compared to savings and deposits or investment through banks products offered by banks.
And borrowers can lend money with lower interest rates, too.
For a comparative analysis, you can search online. Research on the top or best peer-to-peer lending platform.
But among the major players of P2P lending providers of personal loans we got a decent choice. Prosper is a decent option.
Prosper.com is a legitimate online lender. They have been trusted by more than 2 million members. It is founded in 2006. It is known as one of the original online peer-to-peer lenders in San Francisco California.
Prosper offered a good opportunity for lenders. To make a potential return on their investment. And to give access to the borrowers to avail loans at very competitive rates. Prosper accepts not only individual investors. But also institutional ones, like investor club mutual funds and alike.
To know more about Prosper.com when it comes to the cost, loan approval the process.
How to Invest in Prosper?
Step#1: Be a Prosper member. If you find it viable to invest in prosper then you need to do the first which is to be a member.
- You must be at least 18 years old
- Must have Social Security Number and have a bank account
- Prosper requires all members to sign electronically in an agreement. This is a form of acknowledgment to prosper’s term of service
Step#2: Fund your Prosper account. The amount granted for instant inbound transfer is involved between $25 and $10,000. Members are allowed to transfer money at any time. Either to or from prosper account, but subject to a certain modest restriction.
Step#3: Begin the lending process.
- The listing of each loan contains basic information on the purpose of the loan. As well as the amount, interest, term and rate.
- The borrower is expected to hide some confidential information. Like financial info, personnel qualification and others.
- Prosper will publish and calculate the expected return on each proposed loan.
- The range of loan is from $2000 to $35,000.
If you are capable of investing to peer-to-peer lending choose Prosper.com platform. Because it has proven track of the record, secure and legitimate. In this kind of investment, you can maximize your ROI. And cut your overhead expenses since all transaction is done through online.