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The Prosper Diaries
Landing a loan on Prosper isn't always easy. Here's how one business owner navigated the process.
By: Inc. Staff
Published August 2006
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BUY A REPRINT- First attempt After signing up for a free Prosper membership and undergoing a free credit check, Erica Lyn Townshend, inventor of the Strock, posted a loan request for $25,000 at 12.5 percent interest.
- Try, try again Townshend's listing drew some bids, but not enough to fully fund the loan. Her second request, for $9,900, was more reasonable, but the proposed 11 percent interest rate was too low.
- Score! A third request, for $9,500 at 13 percent interest, attracted 77 bidders, and the loan was fully funded. The money appeared in Townshend's bank account two days later.
- Paying it back Townshend will make 36 monthly payments of $320 to pay off the loan. Prosper handles collections. In return, borrowers pay 1 percent of the loan amount up front and lenders pay an annual fee of half a percent.
