Almost everyone is familiar with going to their bank to get a personal loan, but borrowing money from regular people is something of a foreign concept to many. The Prosper marketplace is competitive and people bid on loan rates to create the perfect market. Whilst everyone pays a different rate, all are a low APR.
Who Can Get a Prosper Personal Loan?
In order to get a Prosper loan, a borrower is required to have a good credit rating and will be banded accordingly. It is possible to get a Prosper personal loan for any purpose. This includes: debt consolidation loans, home improvement loans, student loans and business loans. Someone can even borrow money to cover the additional expenses associated with having a baby.
Why is Prosper Different?
Prosper are a specialist US peer-to-peer lender. They operate in the same way as eBay in the sense that lenders bid for borrowers’ business. People can get a Prosper personal loan for between $1,000 and $25,000 over 3 years, although a borrower can pay-off the personal loan at any time.
How Does the Prosper Personal Loan Bidding System Work?
All lenders bid for a portion of a Prosper personal loan amount and specify the lowest interest rate they are willing to accept based on a persons’ credit rating. As soon as sufficient bids are received to cover the entire personal loan, the rate of interest can be bid-down provided sufficient lenders are prepared to accept the reduced rate.
Prosper Debt Consolidation Loans
Those with high APR credit card debt may wish to take out a Prosper debt consolidation loan. The purpose of the Prosper personal loan must be stated in the listing. Debt consolidation loans generally attract a higher rate of APR, although this will depend heavily on that persons’ income-to-debt ratio.
Prosper Business Loans
A number of those seeking to borrow money are doing so because they wish to start-up or expand an existing business. Prosper business loans are unsecured loans. However, late payments, missed payments or loan default will be reported to credit reference agencies and result in a bad credit rating.
Prosper Home Improvement Loans
A Prosper home improvement loan is ideal as it isn’t secured on a property and won’t result in house repossession in the event of loan default. Those with good credit, especially those rated as A* and A, will be able to get a very low APR as well as adding value to their home.
Prosper unsecured loans provide comprehensive service, although it does have it’s critics, especially on the lending side. Prosper allows people with good credit to get a low APR personal loan. Any family struggling with affordability issues should consider a debt solution, such as a debt management plan to help lower monthly repayments. Adding further personal debt can only serve to exacerbate a situation.