Introduction
Prosper.com (website | wikipedia) is an online microlending community. Borrowers post their loan requests (an amount and a maximum interest rate that they are willing to pay). Lenders bid on loans, indicating an amount they are willing to finance and the lowest interest rate that they are willing to receive.
Prosper's algorithms then combine together all of the bids that have been placed, and if there is sufficent money bid to finance the amount requested, then the loan is made. Each lender basically becomes a shareholder in the loan.
Investment history
My initial investment was made on 2007-05-23.
Deposits
Active loans: 15
Paid in full: 1
Principal loaned: $1,070.00
Avg. interest rate: 15.86%
$1,000 of the total is capital I invested, and the other $70 is earned interest that has been reinvested.
Withdrawls
Money withdrawn: $503.03 (through 2008-11-21)
Screenshot
Here is a screenshot that shows the loans I have funded. I have tried to be diverse in my selections, mixing between lower-interest loans that are likely to be paid back in full and higher-risk loans that will either produce lots of interest for me, or never be paid back. My goal is not so much to make a bunch of money, but mainly to see if I can get a better rate or return here than if I had taken the same money and put it in a CD.
