Sunday, November 19, 2006

Experiment with Peer to Peer Lending

A couple of months ago I found a new web site that claims to be the eBay of lending.

Prosper is a intriguing startup by a founder of Paypal that allows you to lend money to others by bidding on loans. Loans are ranked by credit risk and there is even a 3rd party who ranks lenders with risk adjusted profiles. As you can see from the link I'm doing better then my mutual funds -- too bad this wasn't an offer in my 401k.

Updated: As an experiment - I've added a group function where I help people to get loans.
See the site I setup UpgradeYourCredit

Join my group on Prosper, people-to-people lending

1 comment:

Sanjeev said...

I am a fellow Prosper lender. Although I am glad that you are getting good returns (and I believe that with careful borrower selection, Prosper can prove profitable for lenders), I would be cautious against counting my chickens before they hatch. Many Prosper lenders have had bad experiences 3-4 months after their loans originated. Hope you avoid the trap though.

On a sidenote - I have written a couple of posts on borrower selection on Prosper in my blog: