I just saw the first iPhone App that is to support lenders in using p2p lending services. It aims to help them keeping up to date with the latest listings at Prosper, Lending Club and Kiva.
The features of this app are rather basic, but with the number of people lending at p2p services there could be a market for a sophisticated app that really helps lenders select loans while on the move.
Update: There are in fact two other free apps to browse Kiva loan listings.
P2P Lending site Prosper.com changed its business model today.
The company announced: ‘Our site has a new look, and we’ve eliminated the auction and simplified our loan process so that we can connect lenders and borrowers more efficiently. Borrowers will receive pre-set rates and lenders cannot be outbid. We hope you’ll appreciate this streamlined and even more prosperous experience.‘
Prosper is still lagging far behind competitor Lendingclub in monthly loan volume funded. While Prosper’s new loan funding process resembles the one of Lending Club more after Prosper did away with the auction it remains to be seen if it will help Prosper to regain market share.
The main problem of Prosper was not the auctions, but high default rates leading to lender churn.
Another change, according to a recent SEC filing, is that Prosper now allows partial funding of loans. Continue reading
Nooch won Duke’s University Fuqua School of Business Elevator Pitch netting 5,000 US$. Nooch aims to allow anyone to use a smartphone to pay back a friend, settle a bet, or just send a birthday gift in only a few seconds, the startup says.
Not there yet though – for the payout of the prize money a paper cheque was needed.
Money360 offers a first in p2p lending: To my knowledge they are the first live p2p lending service applying the concept to financing real estate loans.
Loan sizes are much bigger than seen before in p2p lending. Minimum loan amount is 200,000 US$, maximum is 5 million US$. The minimum a lender can invest in an individual loan is upscale too: 50,000 US$. This does fit the target audience though as only accredited investors residing in California can join as lenders.
Loans are secured: Each Lender is listed with an undivided fractional interest on the promissory note and deed of trust.
When the transaction is complete and the loan is closed, Money360 will receive a closing fee of 2% of the loan amount. This fee is paid by the Borrower, typically out of the loan proceeds. Money360 charges the Lenders an annual servicing fee of 1.5% of the loan amount for providing all loan servicing functions.
Continue reading
Prosper.com adds 1 and 5 year loan terms. So far only 3 year loans were available on the p2p lending platform.
A recent WUSA-TV coverage on Lending Club gives a good overview on how p2p lending at Lendingclub.com works.
‘Need Money? Ask a Peer’ was broadcasted on Sept. 29th.
(via LC Blog)