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

Prosper review

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

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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 $35,000.

Product NameProsper
Min Loan Amount$2,000
Max. Loan Amount$35,000
APR5.99% - 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. If you have existing loans that charge high interest rates you can consider getting them under a single umbrella with a fixed-rate personal loan through Prosper. This can lead to savings on interest charges, and you no longer have to worry about keeping track of multiple payments. You can use this loan to consolidate debts from other loans as well as credit cards.
  • Small business. Personal loans that Prosper facilitates for small business owners are not traditional business loans, as they are issued to you as an individual, and not in the name of your business. You can apply for this kind of loan for a new business or one that’s already established.
  • Home improvement. A home equity loan is not always an option when it comes to funding home improvements. Luckily, home equity loans aren’t your only option, you can also consider getting an unsecured home improvement loan through Prosper. You can use funds from this loan for a variety of things including repairs, remodeling, adding new furniture or buying new appliances.
  • Special occasion. Prosper facilitates personal loans for special occasions such as milestone birthdays, graduation celebrations, weddings and retirement parties. 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 variety of other purposes, including medical bills and 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
APR5.99%–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?

Here are some main features to consider:

  • Two loan terms to choose from. Prosper offers both a three and five-year fixed 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. The APRs of Prosper personal loans vary from 5.99% to 35.99%.
  • Varied loan amount. Prosper lets you borrow any amount from $2,000 to $35,000. 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

  • Origination fee. You’ll be charged a one-time fee when you get your loan. The origination fee is calculated as a percentage of your approved loan amount — between 1% and 5% depending on your credit profile. Prosper deducts this fee from your loan amount, so be sure to account for that when you request your loan amount. The origination fee cost is included in the APR you’re quoted, so it doesn’t necessarily mean you’ll get a more expensive loan with Prosper.
  • Maximum loan amount. Prosper’s maximum loan amount is capped at $35,000. If you’d like to borrow more than that, you’ll have to consider a different lender.

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.

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