Prosper is a peer-to-peer lending platform that offers loans with low and fixed interest rates in a quick and convenient way.
The application process only takes but a few minutes to check loan rates and terms.Prosper does not fund your loans with their own money but evaluates their applicants and links you to investors. To be eligible for a loan with this lender, you must have a minimum credit score of 640.
(Visit Prosper for more details)
If you’re interested in similar platforms then check out the Student Loan Refinancing and Personal Loans bonus offers from Credible and SoFi here.
| PROMOTIONAL LINK | LOAN DETAILS | REVIEW |
| PersonalLoans | Loan Amounts: Up to $35,000 Loan Terms: 3 - 6 years Current Rates: See website for current rates | Review |
| SoFi | Loan Amounts: Up to $100,000 Loan Terms: 3 - 7 years Current Rates: See Current Rates | Review |
| LendingTree | Loan Amounts: Up to $35,000 Loan Terms: 1 - 5 years Current Rates: See website for current rates | Review |
| Lending Club | Loan Amounts: Up to $40,000 Loan Terms: 3 - 5 years Current Rates: See website for current rates | Review |
| Prosper | Loan Amounts: Up to $40,000 Loan Terms: 3 or 5 years Current Rates: See website for current rates | Review |
Prosper General Information
Apply for a Prosper Personal Loan today!
| Lender | Prosper |
| APR | 7.95% – 35.99% |
| Loan Amount | $2,000 – $40,000 |
| Term Length | 3 or 5 years |
| Origination Fee | 2.4% – 5% |
| Prepayment Fee | None |
| Check Processing | $15 or 5% of amount paid |
| Late Fee | $15 or 5% of amount paid |
| NSF/ Returned Payment | $15 |
| Minimum Gross Income | None |
| Minimum Credit Score | 640 |
| Availability | Nationwide |
| Additional Information | 3 to 5 business days to receive funds |
Borrower Averages
| Credit Score | 710 |
| Credit History | 11 years |
| Annual Income | $89,000 |
Pros and Cons of a Prosper Personal Loan
- You don’t need to own a home to apply.
- The application is simple and easy to follow.
- Initial credit check will not affect your credit score. However when your loan is approved, it will show up on the report.
- It takes up to 1 to 3 business days after approval.
- A personal loan from Prosper can be used towards small business, debt consolidation, home improvement, medical bills and other special occasions.
- If you have excellent credit score, your APR can be as low as 6.95%.
- You can make additional payments if you want. There are no extra fees for paying you loan ahead of time either.
- Prosper has partnered with Clarity Money to work together to improve your financial situations. This app analyzes your financial situation and works to improve it with the use of artificial intelligence, machine learning, and data science.
- You can rebuild your credit with Prosper! Prosper will report your payments to credit reporting bureaus to show them your progress.
- Unfortunately Prosper is not available in all states. Prosper is not available in Iowa or West Virginia.
- You are only limited between either a 3 year term or 5 year term.
- Before you receive your funds, you will be deducted by an origination fee of 2.4% to 5%.
- The late fee is always $15 or 5% the amount due.
Prosper Personal Loan Eligibility
Prosper requires that applicants have a minimum credit score of 640 and a credit history of at least 2 years.. In addition to this there is no no minimum annual income requirement, but you must have a maximum debt-to-income ratio of 50%.
DISCLOSURE: *For example, a three-year $10,000 loan with a Prosper Rating of AA would have an interest rate of 5.31% and a 2.41% origination fee for an annual percentage rate (APR) of 6.95% APR. You would receive $9,759 and make 36 scheduled monthly payments of $301.10. A five-year $10,000 loan with a Prosper Rating of A would have an interest rate of 8.39% and a 5.00% origination fee with a 10.59% APR. You would receive $9,500 and make 60 scheduled monthly payments of $204.64. Origination fees vary between 2.41%-5%. APRs through Prosper range from 6.95% (AA) to 35.99% (HR) for first-time borrowers, with the lowest rates for the most creditworthy borrowers. Eligibility for loans up to $40,000 depends on the information provided by the applicant in the application form. Eligibility is not guaranteed, and requires that a sufficient number of investors commit funds to your account and that you meet credit and other conditions. Refer to Borrower Registration Agreement for details and all terms and conditions. All loans made by WebBank, member FDIC.
How To Apply For a Prosper Personal Loan
Prosper’s application process is more engaged compared to other online lenders. Steps as follows:
- Fill out a brief personal loan application on Prosper’s website for the desired loan amount.
- Upon submitting the form, Prosper conducts a soft pull, which will not affect your credit score. This allows the lender to give you loan options with specific interest rates, fees and loan terms.
- After reviewing your loan offers, you make a selection as to which term best suits your needs.
- Fill out a more detailed application and agree to the site’s lending terms and disclosures.
- Prosper will then put your loan up on its site for investors to fund. (your personal information will remain private)
- While your loan is in the marketplace for investors to oversee, Prosper will conduct a three-stage verification check of your income, identity and other data, which may require you to provide additional documents. Your listing will indicate how much of your information still needs to be verified. The more you have verified, the more credible your listing appears to investors.
- If investors fund more than 70% of your loan, you can borrow that amount. If you don’t make it across the 70% threshold, you may set up a new listing. (Listings stay on Prosper’s marketplace for a maximum of 14 days.)
- Once your loan is fully funded and you’ve been verified, Prosper initiates a hard credit check (this will affect your credit score).
- The loan is transferred to your account.
The entire process — from application to funding — typically takes 3 to 5 days, but it can take longer depending on how quickly you provide your documents.
Bottom Line
Prosper is a good idea for new businesses with limited business credit history. Prosper’s long history in service has given it a strong, reputable name in the online lending industry, where many startups offer similar services.
With Prosper’s quick and easy application process, you can get an unsecured personal loan for up to $40,000 with rates as low as 6.95% APR for qualified borrowers. As long as you meet the eligibilIty requirements, you can receive funds for nearly anything. Eligibility requires a soft credit check but this will not hurt your credit score.
Prosper is a good choice for you if you want to borrow money from a reputable source. Their rates are fixed through the entire length of the term and there are no penalties on early payments. In addition to this, easily budget with Clarity Money. Be sure to search around to see if you can get a better rate!
If you want to search for more options on taking out the best personal loan, check out our full list of Best Personal Loans.
(Visit Prosper for more details)
