It is! The one year anniversary of my Prosper account. I will provide some experience(?) that I had. Um… maybe I should say, no experience?
So, it has been a year and below is the fund distribution.
I invested $5000 and did not reinvest the returned money from the borrowers. The fund was distributed to 42 different loan accounts with an amount between $50 to $250. Each loan has the 3-year term. So far, 2 of the loans are under delinquency status. So far, the account is yielding 7.35%.
I still have 2 more years to collect the rest of the investment. If anything goes, there will be more people falling under delinquency. This means my yield will decrease as time goes. Hum…
Final thoughts.
So far, Prosper has been a good experience. Though last year’s review was above 9% return, 7.35% is still pretty good return considering that banks would only offer 1.2% savings account. If you have money to park out there and not think about it, by all means, go for it.
Yet, I would rather go with different peer-to-peer lending platform beside the Prosper since Prosper doesn’t have an option of selling off notes to another investor. The shortest loan period is 3 years. That means you won’t be able to recover the entire amount of the investment until entire loans mature. If I remember correct, LendingClub offers selling notes to another investor.