Prosper peer-to-peer loans review June 2018 | finder.com

Prosper review

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Get a personal loan through Prosper with a transparent application process and no hidden fees.

Prosper is the pioneer of peer-to-peer online lending in the US. It has helped facilitate over $10 billion in personal loans to date. On this peer-to-peer lending platform, individual investors review loan listings on Prosper and invest in ones that meet their criteria. For borrowers, getting a personal loan through Prosper works similarly to other online loan providers. Borrowers can take out loans for amounts between $2,000 to $40,000.

Product NameProsper
Min Loan Amount$2,000
Max. Loan Amount$40,000
APR6.95% - 35.99%
Minimum Loan Term3 years
Maximum Loan Term5 years
RequirementsMust be 18+ years old, an American citizen or US permanent resident and have a 640+ credit score.

Do you qualify?

Prosper requires applicants to:

  • Have a minimum credit score of 640.
  • Be 18 or older and a US citizen or permanent resident.
  • Live in an eligible state.

Residents of Iowa, North Dakota or West Virginia are ineligible for a personal loan through Prosper.

What can a personal loan through Prosper be used for?

  • Debt consolidation. Take out a loan to pay off your personal loan and credit card debt, preferably with more favorable rates and terms to help you save on interest or make repayments more affordable.
  • Small business needs. Small business owners struggling to qualify for a business loan — especially startups — can cover those costs with a personal loans with a personal loan from Prosper.
  • Home improvement. You can use funds from a prosper personal loan loan for a variety of home improvements including repairs, remodeling, adding new furniture or buying new appliances.
  • Special occasion. Prosper facilitates personal loans for special occasions such as milestone birthdays, weddings and vacations. By taking out a loan with Prosper instead of using a credit card, you could potentially avoid much higher interest rates.
  • Much more. Personal loans through Prosper can be used for a wide range of other purposes, including medical bills and other large purchases.

Prosper Healthcare Lending

Prosper offers financing to help cover medical expenses in the form of term loans with fixed monthly repayments. To be eligible for this loan, you must also have a healthcare provider that is enrolled with Prosper and offers financing options. If your provider doesn’t, contact Prosper to find an eligible medical practice in your area.

Prosper offers two programs for different financing needs and creditworthiness:

StandardExceptional
Loan amount$2,000–$35,000$20,000–$100,000
APR6.95%–35.99%5.99%–15.59%
Recommended credit score640740
SpeedA few daysA few days

The application is fairly straightforward for both. First, check your rates by filling out a preliminary form that allows Prosper to do a soft credit pull that doesn’t affect your credit. If you decide to go through with it, your standard application will be reviewed by underwriting software, while the exceptional application is reviewed by a live loan officer.

What are the benefits of a personal loan through Prosper?

  • Varied loan amounts. Prosper lets you borrow any amount from $2,000 to $40,000. You start the process by creating a borrower listing that lenders can then invest in. You’ll need to get enough lenders to invest in your listing to receive 100% of the required money.
  • Get money for different purposes. You can get a personal loan through Prosper for different reasons including debt consolidation, home improvement, buying a car, buying a motorcycle, paying for medical or dental treatment, making a large purchase, getting married or going on a vacation.
  • Making additional payments. You can choose to make additional payments at any time, and you don’t have to pay any extra fees for doing this. Paying off your loan ahead of time does not attract any penalties.
  • Online account management. You can track the progress of your loan at any time by logging into the Prosper online account management system.
  • Account security. Prosper stores all its borrowers’ sensitive personal and financial information in highly secure state-of-the-art data centers that make use of the latest in web filtering, anti-spam, antivirus, VPN and firewall technologies. The website makes use of automatic session timeouts to minimize the risk of unauthorized access to your account.

Drawbacks to consider

  • Fees. Prosper’s APR includes an origination fee of between 2.4% and 5% of your loan amount, which it deducts from your loan amount before you receive your funds. You also 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 of $15 or 5% of the payment if you opt to pay by paper check.
  • Maximum loan amount. Prosper’s maximum loan amount is capped at $40,000. If you’d like to borrow more than that, you’ll have to consider a different lender.
  • Terms. You’re limited to a choice between either 3 or 5 year loan term.
  • Credit score based APR. The annual percentage rate (APR) you have to pay depends on your overall credit worthiness, so if you have an excellent credit score you can expect to pay a lower APR of around 6.95%. Mediocre and poor credit scores can land you with rates up to 35.99%.

What borrowers are saying about Prosper on Trustpilot

Prosper has received a rating of “Great” on Trustpilot with 7.3 out of 10, across 49 reviews.

Prosper loan Trustpilot image

How can you apply for a personal loan from Prosper?

You can apply for a personal loan through Prosper by clicking the “Go to Site” button on this page to be directed to Prosper’s website. The application is completely transparent, and you can check your rate with a simple one-page form.

Prosper loan apply image

Completing the application requires you to provide the following information:

  • Your name, home address and email address
  • Your date of birth and tax file number
  • A valid form of ID like a driver’s license or a passport
  • Your employment status, employer’s name and employer’s contact details
  • Details about your income

Are you eligible for a personal loan through Prosper?

To apply, you have to meet the following eligibility criteria:

  • A credit score of at least 640 (Prosper uses TransUnion to obtain credit scores)
  • A Social Security number
  • A bank account
  • Regular income
  • Debt‐to‐income ratio below 50%
  • No bankruptcies filed within the last 12 months
  • Fewer than 7 credit bureau inquiries within the last 6 months
  • Minimum of 3 open accounts reported on your credit report
  • Not a resident of Iowa, North Dakota or West Virginia

Investing in loans through Prosper

If you’re interested in investing, funding loans through peer-to-peer lending may be a viable option. With Prosper you can invest as little as $25 in a loan, allowing you to diversify your investments further.

When you invest with Prosper, you get to choose the loans you want to invest in. There is a clear rating system provided, which ranges from AA (low risk) to HR (higher risk). The lower risk loans will have lower returns, and vice versa.

With estimated returns of 8.04% on average, Prosper has a platform with successful investors and an easy-to-use system that puts you in control. If you’re ready to invest with Prosper, simply click “Go to Site”, head over to the “Invest” tab, and sign up. Any monthly returns you earn will be deposited directly into your account.

Frequently asked questions

Important information

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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4 Responses

  1. Default Gravatar
    ScepticalLadyJune 18, 2018

    Why does Prosper need my BANK SIGN-IN and PASSWORD?

    • finder Customer Care
      nikkiangcoJune 19, 2018Staff

      Hi ScepticalLady,

      Thanks for visiting finder.

      Generally, applying for a loan requires you to create an account with them and that includes your username and password.

      Also, in completing the application requires you to provide the following information:

      Your name, home address and email address
      Your date of birth and tax file number
      A valid form of ID like a driver’s license or a passport
      Your employment status, employer’s name and employer’s contact details
      Details about your income

      It is also imperative that you check your credit score as an application to any lenders will appear in your credit file.

      If you are not comfortable doing this online, you can go to their branch and apply personally.

      Hope this clarifies.

      Regards,
      Nikki

  2. Default Gravatar
    LubnaMay 28, 2018

    Do you accept co signers?

    • finder Customer Care
      joelmarceloMay 29, 2018Staff

      Hi Lubna,

      Thanks for leaving a question on finder.

      There is no information whether they accept cosigners to get better chances and be approved for a loan. You can ask them directly by going HERE. If you looking for lenders who accepts cosigners for personal loans, please go HERE.

      Cheers,
      Joel

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