Big news – Prosper goes national with 36 percent max interest rate
Announced today Prosper.com has achieved nationwide lending (exceptions South Dakota and Texas) with an interest rate maximum of 36 percent. Previously maximum interest rates varied on a state by state basis depending by the licenses Prosper had acquired.
Prosper chose the same construct to go national as did Lendingclub in December – both partnered with WebBank, Utah.
All loans originated through the Prosper marketplace are made by WebBank, a Utah-chartered Industrial Bank. Prosper provides services to WebBank in connection with the origination of such loans and Prosper services loans made to Prosper borrowers on behalf of registered Prosper lenders who purchase such loans.
This step has good potential to multiply the monthly loan volume originated by Prosper, as chances for obtaining a loan were in the past harmed in some states by low state interest rate caps (especially for lower credit grades).
Tags: license, loans, maximum interest, national, Prosper, prosper.com, rates, regulation, utah, webbank
December 2nd, 2008 at 2:24 pm
[...] using the WebBank. (see ‘Prosper riding the state-by-state roller coaster‘ and ‘Prosper goes national with 36 percent max interest rate‘). The same states that granted the licenses now wanting to sue [...]
December 22nd, 2008 at 9:35 am
[...] enters quiet period for SEC registration; Cashare launches p2p lending service in Switzerland; Prosper goes national with 36 percent max. interest rate – partnering with WebBank; Zopa UK reshapes markets – concentrates on 36 and 60 months loan [...]