I haven't heard whether Mark and Ted are still prosper-ing. Would be curious to hear the state of the state over there.

Here is an interesting site - there are several others like it that have been started I suspect with their own profit models in development: http://www.savagenumber.com/

If you download the excel file from the report you can do some analysis. I took a look at loans over $20,000 as that is what I am interested in.

If the data is complete, there have been 1137 request for loans over 20,000 of which 43 were funded, 2 HR, 3 C, 8 B and the rest A or AA. The average rate is 14% - the average rate for the A and AA is 13.4%.

So this supports my conclusion that Prosper is not yet a good place for anyone looking for large loans. Using this data alone there it would laborious to see if people are offering lower rates for social returns.

In general it seems like only 9% of loans are funded so given the supply demand imbalance I doubt we will see any big changes to the above conclusions until Prosper attracts more lenders. The current sweet spot for loan size seems to be 3,000-5,000.

The reason I did this research is that I had a idea on how to use prosper as part of a funding strategy for some of TEN’s partners. I think the idea could work, but it is too early.

www.madebysurvivors.com

John, if you know, how do Prosper's funded numbers compare to more conventional loan? I'd guess they're way lower than credit cards or personal lines of credit, but I'm just guessing.

Luke – that question is harder to answer than it seems it should be. The problem is that I don’t really think the prosper credit score system is in any way comparable to the analysis a bank or lending company would do so I don’t believe comparisons would be valid.

It also depends on where you want to look on the curve. For A and AA my gut is that prosper rates are higher than market. For B loans – 14% for a $6000 unsecured loan seem about market but again would really depend on more data about the borrower. D and E loans in the low 20s may be a good deal for prosper borrowers.

As a lender calculating rates is an even bigger problem since the default rates in prosper will likely be higher than traditional lending.

Hi guys,

Shira from Prosper here. The cause-related listings I have seen get funded have been in cause-related groups.

My best suggestion is to join or start a cause-related group and make a very clear case that X% interest (low number) is a better deal for your cause than your current credit card option or whatever else your options are. Clearly define what the money will go toward (break it down), and see what happens. Here is an Omidyar Net group: https://www.prosper.com/public/groups/group_home.aspx?group_short_name=foodchain in which I bet a listing would get funded due to the high community aspect of this...universe.

If you visit Prosper's discussion forums, many group leaders post links to their blogs where they give great borrower suggestions about how to create a perfect listing.

You can also email me directly for encouragement; shira@prosper.com

Hope this helps,

Shira

I have more than $10,000 invested at Prosper right now, in more than 100 loans. About half of my loans are less than 30 days old, and of the rest, I have 2 that are late <15 days (one of those also paid late the first two months so isn't very worrying) and one late 2 months (has never paid, probably won't). Other lenders that I've talked with seem to have more late loans. I think it's still too young for technical defaults. We'll see.

I'm not sure I see lack of lenders as the issue. I see a lack of good borrowers. I'm finding it hard to place my money.

As far as social lending, I haven't seen it at all, but I also haven't been on the boards very much in more than a month.

Thanks for the update, Ted.

Ted said:

I'm not sure I see lack of lenders as the issue. I see a lack of good borrowers. I'm finding it hard to place my money.

Oh Ted you're sounding like a foundation. Welcome to my world.

What needs to change? - see bold