Prosper.com is the first and the market leader in the online peer to peer lending business and Prosper Marketplace, Inc is America’s first Peer to Peer lending Marketplace which contains a wide participant volume of around 2.2 million members and the gross volume of sales comes near to a whopping $1 trillion! Prosper Marketplace even facilitates endorsements from family, friends, communities etc. The system works in a way where the borrowers seek loan along with the need for the reason and gets listed in the prosper site for the investors. The listings are on the basis of the credit score and the history screening and this listing is then forwarded to the interested investors and prosper enables the transfer through their online payment portal and the interest is collected and credited to the investors account.
Prosper does a thorough background check and collects personal information of the borrower before forwarding the loan amount. Prosper.com guides the users through every phase of the loan repayment and gives the needed support. The loan amounts usually range from $2000 to $ 35000 per loan request and are fully amortized through a period of 3 to 5 years along with no penalty on early payments. The income for prosper is a one-time fee which is collected from the borrower and similarly a loan servicing fee from the investor. The investors involved in this system are both of a personal and institutional nature and the borrowers are individual in nature as prosper do not provide business loans. The interest rates are decided by the Prosper’s loan pricing algorithm and the investor can simply choose whether or not he want to fund the borrower. The investor can check out the loan listing which contains the amount sought and the reason behind the borrowing of the loan, this helps the investor in knowing the risks he is taking when he is the providing the loan amount.
Concluding Prosper loan is the market leader in the peer to peer loan industry with a big customer base and an efficient online platform which deals with the process of loan application and also helps the user in the process of repayment of the loan amount. Since there are no middlemen involved Prosper is able to provide loans at a much lesser rate than normal loan providers like banks and other financial institutions which makes it popular.