Taking out a prosper loan to buy stocks

[polkaface]

I read the first 3 pages of this thread and glanced over the rest. Here are some things that I think people are missing.

To the person who said "I feel bad for those that lend you money on Prosper". The person on the hook is the OP, the loan is a valid loan with credit rating at stake. Unless he files bankruptcy, there will be collectors after him to get the money for the lenders.

If he is using this as a savings plan, I don't see that much risk for the lenders.

Also, the Prosper loan is a Principal Paydown loan. He's not paying $3000 interest each year. So if he can get the money into the market and leave it there, he will be using compounding in his favor as compared to the alternative of investing the monthly payment each month. What was it like a 6% compounded return he would have to achieve to make money on this?

Many borrowers on Prosper use the funds to reinvest on Prosper to make the difference on their money. My current Prosper portfolio is getting over 20% on its money. Again it's principal paydown, so unless I reinvest it, my actual return will be lower. (but for OP since he is leaving his money untouched in the market, he doesn't have that to contend with).

That said, I am not saying it is a foolproof lock, but I wouldn't be surprised at all if he can make money on it.