Lending money to people directly is a great way to earn a fair return. And when you make lots of small loan rather than one or two big ones, you spread your risk out and ensure a more reliable return. It's called diversification and the pro's do it everyday. 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.
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