Prosper New Lender Promotion: iPod Nano, Bose, iPad 2

Peer-to-peer lending site Prosper recently received another round of VC money and it appears that they are offering a new iPad 2 promotion to attract enough lenders to match their borrower demand. If you open a new lender account by June 30, 2011 and have a certain amount of funded notes by July 21, 2011, you can earn one of the following bonuses:

  • $5,000 minimum (to $9,999) for an iPod Nano, 8 GB ($149 value)
  • $10,000 minimum (to $19,999) for a set of Bose QuietComfort 15 Noise-Cancelling Headphones ($299 value)
  • $20,000+ for an iPad 2 32 GB WiFi model ($599 value)

These are all pretty high investment amounts, and unless you have a lot of money you’re looking to deploy, I’d recommend wading in gradually and spreading your investments across as many different borrowers as possible. P2P lending has a longer track record now, but you are still basically lending money to people who are looking for a cheaper alternative to credit cards. I’m not surprised there are more borrowers than lenders; rates start at 7.4%. You can see overall performance data at LendStats.com.

If you do become a lender, be on the lookout for their “featured listings”, which currently offer a 4% upfront rebate on investments. Rebates are paid within 60 days of the date that your bid is placed. On $5,000 of investments, that would be $200. The fine print specifically states that you can double dip in this way:

Invested funds may also be used to qualify for Featured Listings promotions, but otherwise such funds cannot be applied to other promotional offers.

Comments

  1. That’s really great that they have these promotions! I only wish I could still be using Prosper. I used to live in NY where I could invest but now that I’ve moved to Texas, I’m not able to anymore.

    I still look at the loans available and there are tons out there that are capable of getting you a very good return and I know for the few loans that I did have, I made a pretty nice return on them, easily covering any defaults (only 1 for me). For those of you out there that haven’t joined or aren’t sure, I’d highly recommend Prosper!

  2. Nice post. It will not apply to me as I live in TX.

    Are there any other web sites out there where you can lend?

  3. Hmm, I wonder if the ipad2 will get you a 1099 form or not. Seems like the way they word their statement is only bonuses over $599, so it may just be under the limit, though getting the 4% may just make that irrelevant anyways. Of course you’re supposed to report it on your taxes anyways, 1099 or no. That’s one of the reasons I’m not much a fan of the pop consumer items instead of just cash returns. I never value them at full retail price, so paying tax as if they were ‘income’ always seems like a poor deal to me.

  4. Rodrigo San says:

    “another round of VC money”
    Please explain what is VC money

  5. I’m not a big fan of the consumer items either, but if the iPad deal was for a lower investment amount, I’d probably try for it.

    VC = venture capital money. Prosper is still a private start-up company.

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