3.25% Lender Promotion is back runs these promotions from time to time.  It appears this happens when there is an imbalance between the number of borrowers and the number of lenders.

Front what I can tell, LendingClub doesn’t seem to do these and personally I don’t know if I am a fan of them.  While I certainly try to take advantage of them when I can, I should caution everyone to not get too excited.  First, they only work on the “Featured” listings.  This includes AA through E and HR.  Don’t assume because it is “Featured” it is any less risky.  Second, this is only 3.25% of the principal you invest.  So if you loan $25 you will get $0.81 back.  This means you still have the other $24.19 still at risk.  Now, the principal due is still $25, so if the loan is paid in full you get the full interest, principal and bonus money.  When you do get the bonus, it shows up as “Miscellaneous Activity”

On a side note, I personally would prefer that Prosper increase the asking rates when these imbalances occur.  The entire point of a market is to balance risk with time with interest.  If there are too many borrowers and not enough lenders then the rate is simply too low.  Just my $0.02.

Here is the fine print:

This offer is only valid for as long as it appears on the Featured Listings Page (http:// (the “Promotional Period”). Prosper may terminate the offer at any time in its sole discretion. To be eligible for the offer, investments must be made manually on listings posted to the Featured Listings Page while the listing appears on the Page. Only eligible investments during the Promotional Period that become funded Notes before the payout date will be considered “invested”. Invested funds can only qualify for one cash back promotion; in the event that a given investment qualifies for two different such promotions, then the investments will count toward both qualification thresholds, if applicable, and the lender will be paid the higher of the two rebate amounts. All rebates will be paid within 60 days of the date that your bid is placed. Investments made by automated plans are excluded from the promotion.


This posting is provided “AS IS” with no warranties, and confers no rights.

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3 Responses to “ 3.25% Lender Promotion is back”

  1. Markets work! raises rates for investors at Below Your Means: A money blog for the rest of us. (BETA)

    […] timing of this is perfect.  It was just a few days ago that we posted on 3.25% “cash back bonus”.  We also opined that the reason for Prospers […]

  2. 4% Lender Promotion at Below Your Means: A money blog for the rest of us. (BETA)

    […] As we posted earlier, runs these promotions from time to time.  The current promotion is for this weekend only.  We here at BYM continue to believe these aren’t really a good thing in the long run.  We would prefer they raise rates or raise the bar for borrowers to qualify to fix imbalances between borrowers and lenders.  […]

  3. Join the party? offering $104 to sign up at Below Your Means: A money blog for the rest of us. (BETA)

    […] One thing I find interesting, this offer is limited to ”the first 200 customers who complete the process will be eligible for the $104 bonus“.  This promotion has been on since Wednesdaythe 27th and is still going on.  This gives you some idea at the rate people are signing up to be lenders and probably explains why Prosper keeps having a borrower / lender imbalance. […]