P2P Lending -- News, Information, Borrowing and Lending Strategy


New Loan Funded — Ethanol Plant — $25,000 at 24% — C Credit — DTI 85%

A new loan funded (Ethanol Plant — $25,000 at 24%).  I participated via a manual bid, this was an auto funding loan.   The borrow had C credit and 85% DTI.  As a reminder my standing orders (and manual bids) only find loans with 0 current delinquencies, 10 or less delinquencies in the last 7 years, and 2 or less public records in the last 10.

With this loan I have $4,100 in principal across 64 loans ($64.06 per loan) with an weighted average interest rate of 17.01% and an account value of $3,953.37. Each loan on average is 1.6% of my portfolio with a maximum in any one loan being 3.8%.

Here is the listing:

RateLadder.com Loan

For the readers that believe in reading the actual description without modification:

We have fully funded a small ethanol plant. It will produce a little over 150,000 gallons of ethanol per year. We have a chance to pay a little bit of money to double that amount. The building and finish product tank and the most expensive portion of the infrastructure exists now. While we were going through the process, the owner of the building started asking me if I could use the other side of the building and we looked into what the firemarshall’s requirments would be and we found out we could in fact put in another still to produce another 150,000 gallons per year. I have investors who are going to come up with some money and I would like to get some from Prosper as well. I have buyers lined up to purchase the product and I have access to molasses which is what I will ferment. The only issue now is to come up with money to double our production potential. I do not feel like we absolutely have to get this second still because we will be making great money with the first one, but this is a good opportunity that I really want to happen. Thank you for your interest.  

Here is a graph of all loans on Prosper with C credit and a DTI of < 85% and Loan Amount $20,000 +/-$5,000 funded in the last 100 days:

RateLadder.com Loan Analysis

Number of Loans Average Amount Borrowed Weighted Average Standard Deviation
66 $20,382.41 19.09% 3.59%

The weighted average plus 1 standard deviation is 22.67%. The weighted average plus 2 standard deviations is 26.26%.  This loan is between 1 and 2 sigmas higher than the mean.

What do you think?


March 14, 2007 | Filed Under Loan Review, Prosper.com 

Useful Info:
Related Articles
New Loan Funded — really want to get out of debt — $25,000 at 25.00% — C Credit — DTI 131%
New Loan Funded — Consolidating — $25,000 at 23.00% — C Credit — DTI 39%
New Loan Funded — home renovations — $25,000 at 19.5% — B Credit — DTI 46%
New Loan Funded — payoff current loan and new invest on business — $25,000 at 29.00% — E Credit — DTI 37%
New Loan — debt consolodation [sic] — $25,000 at 15.00% — B Credit — DTI 15%

← Prosper Days Videos

DTI and Late Payments →



comments

2 Responses to “New Loan Funded — Ethanol Plant — $25,000 at 24% — C Credit — DTI 85%”

  1. jwin74 on March 14th, 2007

    You rely a lot on DTI - Is DTI a good predictor of default? For the last year, 100 days, or what? Also, what about very high DTI’s (eg >1000%, usually means the person hasnt been able to verify income) — are they safer than DTIs around 80-100%?

Trackbacks

Leave a Reply




Prosper America's Leading Online Lending Marketplace

Financial Web - The Independent Financial Portal
Need a loan before payday? Trying hard to settle debt? Get back on track, learn all about consolidating your debt and find out where to get credit cards for bad credit.