New And Shiny Prosper Interest Rates
Prosper dropped a large bomb this morning with their latest site upgrade. The headline topic: 36% interest rates everywhere [1]. Besides being miffed that they couldn't have announced it one day earlier and saved me some time, I find this to be a phenomenal development. Prosper has been limited in their growth due to the state usury limits, and this should increase the borrower volume, especially in the portfolio-worthy credit ranges.
Prosper also rolled out a number of other features at the same time
- Lower instant transfer limits. As RateLadder has observed, this should help those folks who worry about getting paid interest on their idle cash.
- The second loan criteria has been tweaked. It now depends on credit grade as well as loan payment history.
- 1% service fee for AA loans is back. Apparently they think they have enough volume now.
- All loans will list for 7 days. If borrowers are in a hurry, they'll have to turn on auto-funding.
- The Prosper website layout was tweaked. I'm not a fan. If you want to compare, the Prosper Blog still has the old layout (that may change as soon after Andrew reads this).
- There are supposedly other less published changes for us to dig out.
[1] - Void in Texas and South Dakota. Surprisingly, this isn't void in Utah.
10 comments:
[1] - Void in Texas and South Dakota. Surprisingly, this isn't void in Utah."
Why Utah? That's where Prosper's new bank is located.
A joke referring to the fact that lotteries and prize give-aways are not allowed in Utah. Back in the day, before the disclaimers would say "Void where prohibited", they would say "Void in Utah".
Hi Mike, thanks for the troublesome work of updating the state interest rate caps again and again. I am actually writing my masters thesis and want to control for these cap changes in my model. I found your information very helpful but am wondering why there are only rate caps for 18 states on your posts before December 2007. According to the data export, Prosper was lending to 50 states in this time period. Is it that these states' rate caps just didn't change and I can use the caps as of December 2007 for the previous months or where these states not rate capped at all and I can use the rate cap history of prosper on http://www.prosper.com/help/topics/whats_new.aspx ?
Sincere thanks for a reply! Best, Thilo
36% percent on debts? I think its too much.I am not a fan of Prosper because of the reviews I read about them and the challenges that they seem to neglect. Anyway, I think I have to reconsider and visit the site myself.
I hope this new rates stay so that I won't have difficulty in adjusting to new rates again.
Prosper has raised the interest rate cap in the District of Columbia from 6% to 24%. Additionally, Arkansas, Delaware, Kentucky, and Tennessee have had interest rate caps lowered commensurate with the Fed’s lowering of interest rate indexes.
I will not agree on it. I think nice post. Specially the appellation attracted me to study the sound story.
Amiable post and this fill someone in on helped me alot in my college assignement. Thank you for your information.
You`d better stay here.
Thanks for sharing. Like always, on the prosperous and strategic on quarry!
Post a Comment