Prosper.com Celebrates Five Years of P2P Lending

The pioneer of P2P lending marks the occasion with a special one-day promotion

SAN FRANCISCO--(BUSINESS WIRE)-- Five years ago, Prosper.com was launched, creating the world’s first online peer-to-peer loans marketplace. To celebrate its fifth anniversary, Prosper will run a special one-day promotion for borrowers tomorrow. For all new loans submitted on February 17, 2011, Prosper will cover the borrower’s second month’s payment up to $300.*

“As a thank you to the Prosper community, we’re pleased to offer this promotion to help borrowers save even more money,” said Chris Larsen, CEO and co-founder of Prosper.com. “Without the support of our members and the hard work of my colleagues, Prosper wouldn’t be what it is today.”

Larsen had previously co-founded and built E-LOAN into what was heralded as one of the most trusted consumer brands. Prosper was a continuation of his vision to leverage the Internet to make consumer lending markets more efficient, transparent and trustworthy. When Prosper launched in 2006, it ushered in a new era of consumer lending that removed barriers for borrowers and created a new asset class with social and financial benefits for individual investors.

Today, Prosper has grown into a thriving community of lenders and borrowers with more than 1 million members and approximately $220 million in funded loans. Prosper’s five years of experience and actual P2P lending data, along with its world-class risk management team, enables the best borrowers to get rates as low as 5.9% APR**, and investors to get actual annual returns averaging 10%***—the best in the category.

To celebrate its birthday and thank the community, Prosper will run a limited time promotion tomorrow only. For anyone who applies for a loan on Prosper.com and submits a listing on the site on Thursday, February 17, between 12:00 a.m. PT and 11:59 p.m. PT, Prosper will cover their second month’s payment up to $300.* Complete information on the terms and conditions of this promotion can be found online at the Prosper Blog. Or click here to view the latest borrower rates.

“I couldn’t be more excited about the future of the industry,” Larsen added. “While traditional banking and Wall Street credit continue to leave many people without access to funds, we are seeing an increasing number of loans funded on Prosper. In 2011, Prosper will continue to refine its platform and provide borrowers with the best interest rates while continuing to provide our lenders with the industry’s best return rates.”

To learn more about Prosper please visit www.prosper.com

*To be eligible for the promotion, a borrower must submit a loan listing between 12:00 a.m. and 11:59 p.m. PT on February 17, 2011, and that loan listing must result in an originated loan. If a borrower meets these criteria, Prosper will credit the borrower’s second loan payment up to $300. The credit will be posted to the borrower’s account within 30 days of receiving the borrower’s first payment. All personal loans are made by WebBank, a Utah-chartered Industrial Bank. Eligibility for a loan is not guaranteed and requires that a sufficient number of investors commit to fund the loan.

**Based on personal loans made to borrowers with an AA Prosper Rating. APRs by Prosper Rating range from 5.93% (AA) to 35.64% (E). Rate offered is based on Prosper Rating and other factors and the actual rate may differ. Eligibility for a loan is not guaranteed and requires that a sufficient number of investors commit to fund the loan. Refer to Borrower Registration Agreement for all terms and conditions. All loans made by WebBank, a Utah-chartered Industrial Bank.

*** Net Annualized Returns represent the actual returns on Borrower Payment Dependent Notes (“Notes”) issued and sold by Prosper since July 15, 2009. To be included in the calculation of Net Annualized Returns, Notes must be associated with a borrower loan originated more than 10 months ago; this calculation uses loans originated through February 28, 2010. To calculate Net Annualized Returns, all payments received on borrower loans corresponding to eligible Notes, net of principal repayment, credit losses and servicing costs for such loans, are aggregated then divided by the average daily amount of aggregate outstanding principal for such loans. To annualize this cumulative return, the cumulative number is divided by the dollar-weighted average age of the loans in days and then multiplied by 365. Net Annualized Returns are not necessarily indicative of the future performance of any Notes. All calculations made as of December 31, 2010.

About Prosper

Prosper Marketplace Inc. is the world's largest peer-to-peer lending marketplace with over one million members and more than $218 million in funded loans.

Prosper allows people to invest in each other in a way that is financially and socially rewarding. Borrowers list loan requests between $2,000 and $25,000 with loan terms of 1,3, or 5 years. For example, a $5,000 loan with a 3 year loan term for a person with a Prosper Rating of A would have an 11.65% APR and scheduled monthly payments of $160.28. Individual and institutional investors invest in minimum increments of $25 on loan listings they select. In addition to credit scores, ratings and histories, investors can consider borrowers' personal loan descriptions, endorsements from friends, and community affiliations. Once the auction ends, Prosper handles the funding and servicing of the loan on behalf of the matched borrowers and investors.

Prosper was co-founded by Chris Larsen, co-founder of E-LOAN. Prosper has raised $57.7 million in venture capital and is backed by financial and technology luminaries including, Jim Breyer of Accel Partners; Bob Kagle of Benchmark Capital; CompuCredit; Omidyar Network; Capital One Co-founder Nigel Morris of QED Investors; Court Coursey of TomorrowVentures; and Larry Cheng of Volition Capital.

Notes offered by Prospectus.

LEWIS PR for ProsperScott Blevins, 415-992-4400
[email protected]
Twitter: ProsperLoans

Source: Prosper Marketplace Inc.