Is it really posible to get a 17.73% interest rate on my money?

Question

http://www.prosper.com/lend/listing.aspx?listingID=369549&referrer=BRKvult&utm_source=referrer-BRKvult&utm_medium=referral-link&utm_content=link&utm_campaign=referrals-listing

Answer 1

It would be a lot safer to invest in HTE... a Canadian energy company. At their current price ..around $ 19.60...they pay a dividend of $ 3.60 per year ..which amounts to 18.3%.

It is paid monthly at the rate of 30 cents per share... simply if you own 500 shares ( cost = $ 9800 ) you would earn $ 150. per month...for 12 months = $1800.  or  18.3% of $ 9800.

...and of course you would have the sense to invest that $ 150. per month into more shares ...so by the end of the year you might be making $ 180 or more per month.

Better than counting on someone risky to pay you back.

Answer 2

No.

Risk and return are directly related:  as return goes up, so does risk and vice versa.  

If the riskless rate measured by 10 year US Treasury notes is currently 4%, your rate implies a enough risk to suggest a scam and/or a greater than 50/50 chance you are going to loose your money in short order.

Answer 3

Yes it is possible, but you have to understand how Prosper.com is setup.

Whomever is offering 17.73% is doing so because they cannot get a loan for any cheaper.  That could be because of the $ amount, but more likely it is because they have poor credit and no one wants to loan to them.

So, the 17.73% rate you'd be earning is by no means risk free.  If the borrower falls behind on their bills, you would probably be the absolute last person that they would repay, and what are you going to actually do to recover your money?