Prosper $104 New Lender Bonus – First 200 Only

Person-to-person lending site Prosper is offering new lenders a $104 bonus for the first 200 people to complete a new lender application, starting at Noon Pacific on Wednesday 4/27. You must reinvest the bonus into Prosper loan notes, which you can later sell or collect loan payments from until they mature. I really don’t like these types of promos because it’s hard to know if you’ll actually qualify for the bonus. If you’re interested, definitely apply as close to the start time as possible.

To be eligible for the bonus, you must complete the Prosper Lender Registration process starting at noon Pacific Daylight Time on Wednesday , April 27, 2011 (the “Promotion Date”). Only the first 200 customers who complete the process will be eligible for the $104 bonus. The $104 bonus can only be used for investments in Prosper Notes; at its discretion, Prosper may withdraw the bonus in the event that the funds are not invested within 14 days of the Promotion Date.

If you are an existing lender, you probably go the e-mail that they are currently offering 4% cashback for manual investments in their “featured” listings.

Comments

  1. Just curious is the money I lend safe ? Via what approach / mechanism could Prosper guarantee that they (or the borrowers through their website) will pay back the money? Thanks in advance to enlighten me.

  2. I would not characterize it as safe, you are lending money to other individuals with no collateral. Similar to credit cards, which is why the interest rates are relatively high to offset defaults. They usually use auto-withdrawal from checking accounts and have the usual stick of a bad credit score to encourage repayment.

  3. Your return comes from the risk. But it will be relatively the same when you lend money to any other people, in real life or online. Prosper provides a platform for you to lend money that you’ve never met before. That sounds easy. However, I am not quite sure what kind of mechanism the website offers to track down these people you’ve never met when the loan goes sour.

  4. I remember with Lending club that people in Texas couldn’t participate… I’m looking around, but can’t tell if Prosper has similar limitations.

  5. Was able to dig up the map… not all states are eligible. Darn Texas…

    http://www.prosper.com/Images/geography/lender_residence.gif

  6. Newlyfrugal says:

    I don’t know anything about Prosper, but if it is similar to Lending Club, I can offer some insight. I invested $5k in LC over 187 notes. I invested in Sept. 2010 and so far, one person paid in full and I have no defaults.

    You want to spread your money in tiny amounts ($25 to $75) among many borrowers. That way, if a few borrowers default, you don’t lose much money. My average return is 8.00%, which is better than the 4.01% that I get at my Rewards Checking Account. My LC investment is locked in for 36 months.

  7. Jonathan, what do you think of this new offer from Prosper for new investors:

    http://www.prosper.com/prm/prosper-gifts-for-new-lenders.html

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