Prosper Loans Review

Prosper Loans ReviewProsper Loans says that they can provide you with loans that you might not otherwise be able to get from banks and other lenders. They do this by using a form of social lending, whereby you submit your loan request, and individual investors contribute the funds and get paid back when you pay back the loan.

It’s important to point out that not everyone is going to be able to get a loan through Prosper Loans, but individual investors might be willing to loan money and take on a bit more risk than banks are able to. The thing with big banks is that they can afford to only lend money to those with excellent credit, or with lots of collateral to back up the loan, like mortgages and auto loans. When you want a personal loan it gets a bit trickier, since you are only using your good name as collateral, but to an investor you’re just a stranger so they have to use other means to determine your creditworthiness

If you need more money than a payday lender is able to loan, you probably think that you have no other options than to go to the bank and hope you can work something out. With Prosper Loans you are able to submit your loan request knowing that the decision won’t be in the hands of just one loan office that is following corporate protocol. You’ll be sized up and judged by dozens if not hundreds of individual investors looking to beat the sort of return they’d get with other investment vehicles.

Prosper Loans Review – Can Everyone Win?

This seems to be set up as a win-win-win scenario. Prosper Loans wins because their fee is built right into the system. Investors win when you pay back the loan because they are getting a fixed amount of interest on their money, and if they choose a good borrower they aren’t taking on too much risk. And the borrower wins because they are getting rates that are much better than a payday loan or an online loan, and they are getting money when they might otherwise be rejected from the bank.

So What’s the Catch?
There really isn’t a catch as long as the money is paid back on time. The Information Age has allowed us to do lots of things differently, and loaning money is one of them. Take for example Kiva.org that sends donations to third world entrepreneurs that need start up money. Philanthropists can get started with just a $25 donation, and the money is paid back when the business starts to turn a profit. The money can then be re-invested to another budding entrepreneur. This is something that just couldn’t happen before the Internet came along, and is changing the way people invest, donate, and borrow money.

Rates and Fees
The rates you’ll pay are determined by your credit rating, and those with the best credit are going to get the best rate. It’s the norm that those with the best credit get the best rates, no surprise there. But being able to borrow money with credit that isn’t so good is a privilege that many will jump at since there aren’t too many other viable options. Since the money comes from several different investors, the risk is spread around. So if you need $2000 you might get $500 from four different people rather than have one single person give you the entire $2000. This makes it so if you are a high risk borrower they are more assured of getting their money back, or at least not losing it all.

Requirements
You’ll have to show that you are a borrower worth lending to, and they give you tips and tricks for how to make your loan request stand out among the others, and convince investors to lend to you. It’s worth the time to take a look at the examples they give you so that you increase your chances of getting the money you need. In many instances you only get one shot at making a good first impression, so you don’t want to put your name out there and make a request without doing a little homework and putting yourself in the best light possible. It could save you money by getting you a better rate.

Our Recommendation
If you don’t mind a bit of a wait, and the money isn’t super critical to your survival, this would definitely be worth looking into to see if you can get a sizable amount of money to do the things you need to do.

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