Lend money to other people and earn interest

Lending money directly to people is a great way to earn a fair return. Prosper provides a lot of credit, employment, and income data, and lets you choose exactly who you want to lend to.

Isn't this risky? What if a borrower defaults?

When you make lots of small loans rather than one or two big ones, you spread your risk out and ensure a more reliable return. It's called diversification and the pros do it every day. Here's how it works.

Although we refer to you and other individuals as "lenders", the loans are being made by Prosper and then sold to you, making you a loan purchaser. The term "lender" is used through the site for the sake of simplicity.

More on lending:

• Become a lender
• Transfer funds to Prosper
• Find loan listings