Your guide to peer to peer lending

Why is This E-Grade Loan Paying Just 6% Interest?

by Peter Renton on January 24, 2012

I first noticed this in one of my Lending Club accounts about a year ago. It was a C-grade loan that went from 14% and was suddenly paying 6%. I thought it must have been a mistake but when I did some investigating I discovered this 6% rate was indeed correct. How can that be?

I didn’t think much more about it because it was an isolated incident that hasn’t happened since. Then yesterday, I noticed this tweet from Michael at Nickel Steamroller. There are several low grade loans for sale right now on Folio with a 6% interest rate including this E-grade loan. What gives?

Active Duty Military Can Only be Charged 6% While Deployed

These loans didn’t start out at 6%. They were normal loans with an interest rate commensurate with the credit risk. But there is a law called the Servicemembers Civil Relief Act (SCRA) that states that when active duty military are deployed they can only be charged a maximum of 6% on any debt incurred prior to their deployment. Here is the pertinent information. This act: [click to continue…]

{ 38 comments }

Roundup of Social Lending News – January 21, 2012

by Peter Renton on January 21, 2012

Every Saturday I bring you the latest news from the world of peer to peer lending. These are the best of the news articles and blog posts from around the web that I shared on Twitter this past week.

There was plenty of news items from the UK this week but it was a pretty quiet week in the U.S. We did hear from a new blogger (at least new to p2p lending) with the unusual site name of Aiglstorfer.me – he shared his thoughts on investing in Lending Club. One of the most interesting articles of the week was the one on the Financial Times website (FT.com). The author paints a pretty dismal picture of the current state of the global financial system but sadly hits on some valid points. Don’t dwell on this article, otherwise it might spoil what will hopefully be a good weekend.

Wiseclerk (UK) - Adwords Marketing Activity of British P2P Lending Marketplaces

Nickel Steamroller - FICO vs VantageScore

FT.com (UK) - Trust no one with your money is the tragic legacy of the crisis (free registration required)

Beating Broke - Lending Club Returns Update

Mindful Money (UK) - Seeking income? Try an alternative

Lending Club Experience - Six Months and I’m Reaching A State of Peace

Aiglstorfer.me - My Experience with LendingClub

Scotsman.com (UK) - Social lending offers frustrated savers chance to see cash grow

{ 4 comments }

A Snapshot of All My P2P Lending Accounts

January 19, 2012

Today, I am going to open the kimono, so to speak, and provide an inside look at all six of my p2p lending accounts. The question I get more than any other is about the returns I am getting. This is what nearly every investor wants to know. So, today I will answer that question [...]

5 comments Read the full article →

Prosper Running a $1,000 Cash Giveaway

January 15, 2012

Prosper has a new promotion to start out the New Year. Just provide them with your name and email address and you will have a chance to win $1,000 cash. There is nothing else you have to do to enter. You can also increase your chances of winning by using your special referral link and getting [...]

10 comments Read the full article →

Roundup of Social Lending News – January 14, 2012

January 14, 2012

Every Saturday I bring you the latest news from the world of peer to peer lending. These are the best of the news articles and blog posts from around the web that I shared on Twitter this past week. It seems that the mainstream media are most interested in the borrower side of p2p lending, in particular [...]

0 comments Read the full article →

The Large Impact of Early Defaults on ROI

January 9, 2012

I have been keeping a daily track of my NAR on all my Lending Club accounts now for almost a year. I have also been doing this for my Prosper accounts since they introduced annualized return numbers back in October. During this time I have been able to observe the negative impact that defaults have [...]

17 comments Read the full article →

Roundup of Social Lending News – January 7, 2012

January 7, 2012

Every Saturday I bring you the latest news from the world of peer to peer lending. These are the best of the news articles and blog posts from around the web that I shared on Twitter this past week. I have been offline most of this week as I traveled to Sydney, Australia (my home town) and [...]

0 comments Read the full article →

My Five P2P Lending Predictions for 2012

January 1, 2012

Happy New Year! I hope you enjoyed the arrival of the new year last night whatever you did. As for me, I am getting ready to go on a big trip, so it has been a busy holiday weekend for me. Tomorrow, my family is flying to Sydney (my home town) for an extended visit. [...]

46 comments Read the full article →

A Look Back at the Social Lending News in 2011

December 31, 2011

Normally, every Saturday I bring you the latest news from around the web about p2p lending. Today, I will do that as normal, but I am also going to feature some of the major news stories of 2011. Nickel Steamroller – 2012 Predictions for P2P Lending Pinch That Penny - Investing: P2P Lending vs. Bank CDs [...]

2 comments Read the full article →

2011 Was a Phenomenal Year for P2P Lending

December 30, 2011

Well 2011 certainly went out with a bang at Lending Club and Prosper. Both companies posted another month of solid loan volume increases and their combined total crossed $40 million for the first time. This compares very favorably to the $16.6 million combined volume for December 2010. The total dollar amount for all new loans [...]

11 comments Read the full article →

← Previous Entries