Lenders, Borrowers Hook Up Over the Web
Jane Boon Pearlstine writes for the Wall St. Journal about some of her first hand experiences lending online on Prosper.com where she's made "more than 300 small loans at an average rate of about 21%."
Prosper operates like both an auction site and an online dating service. It provides an eBay-like forum where lenders can evaluate hundreds of prospective borrowers, each seeking loans of $1,000 to $25,000, repayable over three years. The borrowers explain why they want the loan, Prosper provides information on homeownership, credit history and debt-to-income ratio, and the loan gets put up for bid at the maximum interest rate the borrower is willing to pay.
Stumble It!
Add your comment... (note that all comments are reviewed before they're published)