Re: eBay for loans
Also, this is subtly different, but those default rates are for people APPROVED for loans.
So it's not 10.40% of Es default. It's 10.40% of Es approved for loans by financial institutions default. It's my opinion that a very high percentage of people on Prosper wouldn't get funded by a traditional institution (why else would they be on Prosper, for one thing), and should therefore be expected to be even higher-risk.
Don't forget this is a different concept than the fact that people are, in my opinion, more likely to default on a Prosper loan than a traditional one. One idea is in regards to the person the loan is given to, the other is in regards to the type of loan. As such the two additional risks must both be added.
Would triple the default rates listed be going too far?
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