How it all works?
Peer to Peer funding involves a borrower and a lender which are both individuals. The process of peer to peer loans can be explained with ease in three steps:
- Loan Listing: The first step involves listing of the loan by the borrower. This process involves providing information regarding the requirement of the borrower and the interest preference. The borrower should also specify the need of the loan. After the borrower entersthe details the company gets the credit score and rates the borrowing capability of the borrower.
- Review: The second step is the review of the listing by potential investors who scans through the list and selects a borrower who suits their requirement. The investor has the freedom to select any listing which suits their financial need.
- Payment: After the loans have been confirmed the payment is paid by the borrower and the agreed amount is transferred to the investors prosper account.
- Quick invest: This is an extra feature which is provided for the users where an investor can make a quick investment in an option which caters to his needs. Prosper loans website enable the investor to quickly shortlist a list of choices according to the preference specified. Investor can either invest in multiple options or can invest in an individual request. This diversifies the risk of the investor which is an interesting feature provided by Prosper Loans.
- FOLIO Investing: FOLIO investing is another option enabled for the customers of prosper loan. Under this option investor can involve in folio trading through the notes issued by prosper Funding LLC. The investors are enabled access to the Alternative Trading .Marketplace (ATS). This is facilitated to the investor as a mean of additional investment.
- Interest rates: Prosper sets the interest rate for borrowing considering many factors which includes a) Prosper Rating( an indicator of expected losses) b) Loan term c)Economic environment d) Competitive environment. The rates available or are likely to be available can be searched from the link underneath
Peer to peer lending industry is and industry which is witnessing a considerable amount of growth. These new age investing options are a token of the innovative financial products that are yet to come. Prosper Loans is a fast growing company which involves numerous lender and borrowers and also has been successful in acting as a perfect mediator between the clients.