The holiday shopping season is officially here, which means consumers will be withdrawing money from their bank accounts and using credit cards for holiday spending. Individuals considering a large purchase may be searching for a loan. Peer-to-peer lending has become increasingly popular in recent years and the lender Prosper is making it even more attractive.
Prosper and Lending Club are the two major peer-to-peer lenders in the U.S. Consumers who are deciding between the two may find Prosper the best choice this holiday season. For a limited time, each new Prosper borrower will receive a free iPod. People can get a loan to fund large holiday purchases plus a free iPod for themselves- not too shabby.
To get this deal, the individual must open an account with Prosper and list a new loan prior to November 28. The loan must be funded by December 16 in order to receive the iPod before Christmas. A qualifying loan amount must be $2,000 or more. First-time borrowers with the best credit can receive an interest rate as low as 6.59 percent. The maximum APR on a Prosper loan to a first-time borrower is 35.84%, which rivals that for credit card cash advances.
Holiday presents aside, many borrowers use the funds to start a business or consolidate existing debt. A strong case must be made by the applicant because investors do not lend their money frivolously. These unsecured loans feature lower fixed rates than most bank personal loans. The rates are far lower than those of payday loans, which have APRs in the thousands.
A Prosper loan is also attractive because investors are transparent regarding loan terms and conditions, which is partly what makes peer-to-peer lending so popular. Borrowers have convenient options for making monthly payments. By repaying the loan as outlined, they establish a good reputation within the industry.
