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Group Launches to Help US Residents Find More Competitive Rates for Personal or Small Business Loans
By Adam | November 4, 2006
Group Launches to Help US Residents Find More Competitive Rates for Personal or Small Business Loans
Here’s an interesting way to get money when you run out of options from traditional lenders like banks and credit unions.
US Citizens and small businesses that may be seeking loans can now join a group that is taking advantage of a new company called Prosper that connects lenders and borrowers online.
Virtual Lending Group is led by Michele Brown and currently has 75 members.
“Until now, banks and credit card companies have controlled who is able to obtain credit and the rates people pay,” said Michele Brown.
“With Prosper, individuals have the opportunity take control of consumer credit by dictating the terms of their own loan and placing it up for bid in an online auction.
Virtual Lending Group assists new members and helps drive down potential interest rates even further because of our collective repayment history.”
Prosper’s people-to-people marketplace is intuitive for those who have used eBay, but instead of listing and bidding on items, people list and bid on loans.
Interested borrowers begin by creating a loan listing for up to $25,000 that includes the maximum interest rate they are willing to pay.
Lenders can then begin bidding to fund portions of the loan, potentially driving down the interest rate.
Once the auction has ended and the loan is funded, Prosper consolidates the bids with the lowest rates into one simple loan.
Prosper handles all ongoing loan administration tasks including loan repayment and collections.
Local borrowers can also consider joining Virtual Lending Group.
At Prosper, people who borrow as members of a group can get better interest rates from lenders because the character and reputation of the group gives lenders more confidence that loans will be repaid.
Virtual Lending Group is comprised of people who need business cash flow, want to invest on Prosper and need funds, in over their head with credit card debt and want to consolidate or are working on building credit and raising their credit score.
Interested lenders can also participate in Prosper by making loans to other individuals.
-Adam
| Group Launches to Help US Residents Find More Competitive Rates … PressZoom (press release),?Netherlands?- … on Prosper and need funds, in over their head with credit card debt and want to consolidate or are working on building credit and raising their credit score. … |
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Topics: Personal Finance |