Online Lender Prosper Now Making Loans Again

Prosper, the popular Web-based person-to-person lending service, is again offering loans and financial services after getting approval from the Securities and Exchange Commission. 

With the SEC  registration process completed, Propser begins offering a secondary market for lenders who wish to sell their Propser loans to other investors.

The move significantly enhances the liquidity for Prosper’s lenders, who can auction their loans at any time on the new auction-based trading platform. Prosper CEO Chris Larsen said the SEC’s approval to offer its service is very important especially when the financial system is in a crisis mode.

The company went into a quiet period nine months ago, suspending the ability to seek loans through Prosper.

Prosper is back online with  enhanced features that include a bid floor to help guide lenders and minimum bids of $25, cutting in half the former minimum bid to allow lenders to better diversify their loan portfolios.

The company also boosted the minimum credit score to get a loan through the service to 640 from 520.

Initially, Prosper will be accessible to residents of 14 other states. Several other states are expected to allow the micro-loan service over the next few weeks

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