Prosper Personal Loans: 2018 Review

Prosper is a leading marketplace lending platform for consumer loans. Prosper’s online lending platform connects people who want to borrow money with individuals and institutions that want to invest in consumer credit.

Founded in 2005, Prosper Marketplace, Inc. is headquartered in San Francisco. Loans that are originated through the Prosper marketplace are made by WebBank, member FDIC. Prosper has more than $11 billion in cumulative originations since its inception in 2005.

Prosper Loan Rates & Terms

APR range: 5.96%—35.97%
Available loan terms: 36-60 months
Loan amounts: $1,000—$50,000
Time to fund: One day
Origination fee: 1%–6%
Credit needed: 620+
Income needed: Varies
Best for: Those with a steady income

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Prosper personal loan review

Prosper has an A+ rating from the Better Business Bureau. Prosper offers two types of consumer products — fixed-rate, fixed-term personal loans for borrowers and investments in consumer credit personal loans for individuals and institutions.

Personal loans from Prosper come with terms of 3 to 5 years. They are single monthly payment loans and there are no hidden fees or prepayment penalties. Interest rates are based on customer credit.

Investors in Prosper may select individual loans to invest in or use an Auto Invest tool to build their profile based on the criteria they select. Investors in Prosper enjoy monthly returns on their investments.

On the loan side, all Prosper loans are simple interest, fully amortized loans. Annual percentage rates (APRs) through Prosper range from 5.99 percent APR to 36.00 percent APR, with the lowest rates reserved for the most credit worthy applicants.

The biggest benefits

  • Qualify with lower credit. Applicants with scores as low as 640 may be consider, though the best rates are offered to those with excellent credit.
  • Pre-qualify with a soft credit pull. Your credit isn’t affected when you check your interest rates.
  • No prepayment penalty. Prosper loans come with terms of 3 to 5 years. They are single monthly payment loans and there are no hidden fees or prepayment penalties.
  • Multi-purpose loans.Loans from Prosper have been used for debt consolidation, large purchases, home improvement projects, medical expenses and more.

The drawbacks

  • Late fees. You might have to pay a late fee of $15 or 5% of the amount due, an insufficient funds fee of $15 or a check processing fee if you opt to pay by paper check.
  • APR based on credit score. Those applicants with excellent scores will likely be eligible for an APR of 6.95%, while those with less-than-perfect credit may qualify for up to 35.99%.
  • Origination fee. Prosper’s APR includes an origination fee of between 2.41% and 5% of your loan amount, which it deducts from your loan amount before you receive your funds.
  • Potential to go unfunded. Investors have to commit to your loan within 14 days of listing. If this doesn’t happen, you will have to create a new listing and begin again.

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Disclaimer

Annual percentage rates (APRs) through Prosper range from 6.95% APR (AA) to 35.99% APR (HR) for first-time borrowers, with the lowest rates for the most creditworthy borrowers. 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.

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