Learn To Lend

Prosper competing with credit card companies and traditional banks

“We’re all focused on competing with the credit card companies and traditional banks” Chris Larsen - chief executive of Prosper

• According to Jean Garascia, a Javelin Strategy & Research analyst, between $300 million and $400 million has been borrowed through peer loans in the U.S., in comparison to the total $880 billion credit market.
• Renaud Laplanche, founder and chief executive of Lending Club said borrowers get an interest rate on an unsecured loan that’s 2 percent to 3 percent better than they’d get from banks, and lenders get a return of 10 percent to 12 percent — better than many investments.
• Betty Cabrera got a three-year unsecured personal loan on Prosper. Her loan started at a 13.99 percent interest rate and was bid down to 9.9 percent.

Source: Seattle Post Intelligencer – Bank said no? Try a personal lender online