About lender
Prosper Funding LLC is a marketplace providing loans. It was founded in 2005 as a P2P lending company and issued loans for more than a million borrowers. Prosper Marketplace is located in San Francisco, California.
Prosper allows people to lend to each other. Investors commit funds to the borrower's accounts if the Prosper marketplace accepts them. The borrower can submit an online application form for fixed-rate terms in amounts ranging from $2,000 to $50,000. Prosper marketplace generates revenue by issuing a 2-5% origination fee.
Prosper issues personal loans, home equity loans, credit cards, and investments and provides education for making better financial decisions.
Personal loans are originated by WebBank and are subject to repayment within up to five years. The Coastal Community Bank, a member FDIC, issues the credit cards.
The borrowers sign the borrower registration agreement digitally before using their personal accounts.
Key Features
Prosper is an American peer-to-peer lending platform that connects borrowers with investors who are willing to fund their loans. Here are some key features of Prosper:
- Borrower eligibility. Prosper offers personal loans to borrowers who have a minimum credit score of 640 and a debt-to-income ratio of less than 50%.
- Loan amounts. Borrowers can apply for loans ranging from $2,000 to $50,000, with 2 or 5 years loan terms.
- Loan purpose. Prosper offers personal loans for a variety of purposes, including debt consolidation, home improvement, and major purchases.
- Interest rates. The interest rates on Prosper loans range from 6.95% to 35.99%, depending on the borrower's creditworthiness.
- Fees. Prosper charges an origination fee of 2.41% to 5% of the loan amount, depending on the borrower's creditworthiness. There are no prepayment penalties.
- Funding process. Investors can fund loans in increments of $25, and Prosper pools these funds to create a loan for the borrower. Once the loan is funded, Prosper distributes the funds to the borrower.
- Investor returns. Investors earn returns based on the interest rate of the loan and the borrower's creditworthiness. Prosper charges investors a service fee of 1% of the loan's outstanding principal balance.
- Servicing. Prosper services the loans, which includes collecting payments from borrowers and distributing payments to investors.
Prosper offers borrowers and investors a simple, transparent lending platform with competitive rates and fees.
Pros and cons
Pros
- You can change your payment date, set it up manually, or set up automatic payments.
- Joint loan options. You can apply with a co-signer.
- The borrower registration agreement is available on the website. You can learn how your account works and what you can do through it.
Cons
- Variable interest rates for HELOCs. The rates may get down, but they also can rise, so you will pay more interest.
- Fees. Origination fees vary from 2.42% to 5%. The late fee is either 5% of the monthly payment or $15 if it is a greater sum.
- Doesn't allow direct payments to the lenders if you take a loan consolidation debt.
- Personal loan APRs are higher than with other lenders.
Products
Prosper offers different personal loans for different purposes:
- Debt consolidation;
- Home improvement;
- Healthcare financing;
- Household expenses;
- Vehicle purchases,
- Adoption loans;
- Business loans;
- Green loans;
- Military loans.
All personal loans are unsecured. The loan terms vary from 2 to 5 years. There are no pre-payment penalties. The loan terms range from $2,000 to $50,000. The Prosper personal loan APRs vary from 7.95% to 35.99%. The most creditworthy borrowers get the lowest rates. Personal loans are issued through WebBank.
You can opt for a credit card. You will be charged no annual fee for the first year if you set up automatic payments. There is no requirement for contributing a security deposit. The credit limit here is $3,000.
HELOCs come in amounts up to $500,000 and variable rates as low as 4.74%. Variable annual percentage rates can drop or increase depending on the Index rate. Therefore, you can either pay more or less during your loan term. Qualified borrowers can take up to 97.5% of their home's value. Texas borrowers are eligible for up to 80% of their home's value.
To check what interest rate you are eligible for, you can conduct a soft credit check. For that, access the page with the suitable loan option for you. Click on About us, Loan types, and fill in the information about the estimated loan amount loan purpose, and select your credit score. Tap Check your rate and follow the instructions.
Reliability
Prosper has been operating since 2005 and has funded over $20 billion in loans to more than one million borrowers. The platform has an A+ rating with the Better Business Bureau and has received positive reviews from customers.
In terms of reliability, Prosper has implemented several measures to ensure the safety and security of its platform. For example, Prosper uses encryption and multi-factor authentication to protect user data and prevent unauthorized access. It also employs an automated underwriting system to assess borrower creditworthiness and reduce the risk of default.
Prosper also has a collection process in place to manage delinquent loans and minimize the impact on investors. Prosper may engage a third-party collection agency to recover the funds if a borrower falls behind on payments. In the event of a default, Prosper may take legal action to recover the outstanding balance.
Overall, while no lending platform can guarantee 100% reliability, Prosper has a strong track record and has taken steps to mitigate risks and ensure the safety and security of its platform.
Funding a loan
Funding personal loans typically takes Prosper just one day. After you submit a loan request, you will receive money in your bank account the next day. For HELOCs Prosper loans, the funding takes about 11 days.
However, if you submitted an application form on the weekend, it will take a little longer, and you will get your funds on the next business day.
You can't make subsequent draws during the first 90 days after the closing for HELOCs. Then, you can make subsequent draws of $1,000 and above. This option is not available for Texas borrowers.
Investors commit funds to your account depending on your creditworthiness. A sufficient number of investors should contribute to your loan to get the total loan amount. Therefore, the loans are not guaranteed.
Additional Services
In addition to its core peer-to-peer lending platform, Prosper offers several additional services to borrowers and investors, including:
- Credit cards. Prosper card is a no-fee credit card issued by Prosper, with a credit limit of up to $3,000.
- Investing tools. Prosper provides investors with tools and resources to help them make informed investment decisions, including access to historical loan data, portfolio analysis tools, and investment strategies.
- Mobile app. Prosper offers a mobile app that allows borrowers and investors to manage their accounts, track their loans or investments, and make payments or investments from their mobile devices.
- Customer support. Prosper offers customer support via phone, email, and live chat to assist borrowers and investors with any questions or issues they may have.
Overall, Prosper's additional services provide borrowers and investors with additional tools and resources to manage their loans or investments and improve their financial well-being.
Prosper vs. Lending Club
Prosper and Lending Club are popular peer-to-peer lending platforms offering personal loans to borrowers and investment opportunities to lenders. While both platforms have similar business models, they have several key differences. Here are some of the main differences:
- Loan Offerings. Prosper offers personal loans for a variety of purposes, including debt consolidation, home improvement, and small business loans. Lending Club also offers personal loans, as well as loans for medical expenses, auto refinancing, and other types of loans.
- Loan Limits. Prosper offers personal loans ranging from $2,000 to $50,000, while Lending Club offers loans ranging from $1,000 to $40,000.
- Interest Rates. Prosper and Lending Club both offer competitive interest rates, but Prosper's rates tend to be slightly higher than Lending Club's. Prosper's interest rates typically range from 6.95% to 35.99%, while Lending Club's rates range from 6.95% to 35.89%.
- Fees. Both Prosper and Lending Club charge fees for loan origination, late payments, and insufficient funds. However, Prosper's fees tend to be slightly higher than Lending Club's.
- Investor Requirements. Lending Club requires investors to have a minimum account balance of $1,000, while Prosper has no minimum investment requirement.
- Availability. Lending Club operates in all states except for Iowa and West Virginia, while Prosper operates in all states except for Iowa, North Dakota, and Maine.
- Loan Approval Process. Lending Club tends to have a faster loan approval process than Prosper. Lending Club typically approves loans within a few days, while Prosper's approval process can take up to a week or longer.
Ultimately, the choice between Prosper and Lending Club depends on your individual needs and preferences. It's important to compare the features, fees, and loan options of both platforms before making a decision.
Prosper vs. Upstart
Prosper and Upstart are both peer-to-peer lending platforms that offer personal loans to borrowers and investment opportunities to lenders. However, there are several key differences between them. Here are some of the main differences:
- Loan Offerings. Prosper offers personal loans for a variety of purposes, including debt consolidation, home improvement, and small business loans. Upstart offers personal loans for a variety of purposes as well, but with a focus on lending to borrowers with limited credit histories or thin credit files.
- Loan Limits. Prosper offers personal loans ranging from $2,000 to $50,000, while Upstart offers loans ranging from $1,000 to $50,000.
- Interest Rates. Prosper and Upstart both offer competitive interest rates, but Upstart's rates tend to be slightly lower than Prosper's. Prosper's interest rates typically range from 6.95% to 35.99%, while Upstart's rates range from 6.7% to 35.99%.
- Fees. Both Prosper and Upstart charge fees for loan origination, late payments, and insufficient funds. However, Upstart's fees tend to be slightly lower than Prosper's.
- Approval Process. Upstart's approval process is different from traditional lenders and other peer-to-peer lending platforms. They use machine learning algorithms to assess creditworthiness, which allows them to consider factors beyond traditional credit scores, such as education, job history, and other personal data. Prosper, on the other hand, uses more traditional underwriting methods to evaluate loan applications.
- Availability. Upstart operates in all states except for West Virginia and Iowa, while Prosper operates in all states except for Iowa, North Dakota, and Maine.
- Investor Requirements. Both Prosper and Upstart require investors to be accredited investors with a net worth of at least $1 million or an annual income of at least $200,000. However, Upstart also allows non-accredited investors to invest through its partnership with the Republic platform.
Ultimately, the choice between Prosper and Upstart depends on your individual needs and preferences. It's important to compare the features, fees, and loan options of both platforms before making a decision. If you have limited credit history or thin credit files, Upstart may be a better option for you. However, Prosper may be a better fit if you're looking for a more traditional personal loan with flexible terms.
Prosper vs. SoFi
Prosper and SoFi are both peer-to-peer lending platforms that offer personal loans to borrowers and investment opportunities to lenders, but they differ in several ways. Here are some of the main differences:
- Loan Offerings. Prosper offers personal loans for a variety of purposes, including debt consolidation, home improvement, and small business loans. SoFi offers personal loans, student loan refinancing, mortgages, and other financial products.
- Loan Limits. Prosper offers personal loans ranging from $2,000 to $50,000, while SoFi offers loans ranging from $5,000 to $100,000.
- Interest Rates. SoFi offers lower interest rates compared to Prosper, especially for borrowers with good credit. SoFi's interest rates typically range from 5.99% to 19.96%, while Prosper's rates range from 6.95% to 35.99%.
- Fees. Both Prosper and SoFi charge fees for loan origination, late payments, and insufficient funds. However, SoFi does not charge any origination or prepayment fees, while Prosper does charge an origination fee that ranges from 2.41% to 5%.
- Approval Process. SoFi offers a relatively quick loan approval process and may be a good option for borrowers who need their funds quickly. Prosper's approval process can take up to a week or longer.
- Eligibility Criteria. SoFi has more stringent eligibility criteria than Prosper. SoFi requires a minimum credit score of 680, while Prosper requires a minimum credit score of 640.
- Membership. SoFi offers membership benefits, such as career coaching, financial planning, and networking events, to its borrowers and investors. Prosper does not offer membership benefits.
Ultimately, the choice between Prosper and SoFi depends on your individual needs and preferences. If you're looking for a wide range of financial products, such as student loan refinancing or mortgages, SoFi may be a better option. Prosper may be better if you're looking for a simpler personal loan. It's important to compare the features, fees, and loan options of both platforms before making a decision.
Prosper vs. Best Egg
Prosper and Best Egg are both personal loan providers that offer loans to borrowers. However, they differ in several ways. Here are some of the main differences:
- Loan Offerings. Prosper offers personal loans for a variety of purposes, including debt consolidation, home improvement, and small business loans. Best Egg offers personal loans for a variety of purposes as well, but with a focus on debt consolidation and credit card refinancing.
- Loan Limits. Prosper offers personal loans ranging from $2,000 to $50,000, while Best Egg offers loans ranging from $2,000 to $35,000.
- Interest Rates. Best Egg offers competitive interest rates, especially for borrowers with good credit. Best Egg's interest rates typically range from 5.99% to 29.99%, while Prosper's rates range from 6.95% to 35.99%.
- Fees. Both Prosper and Best Egg charge fees for loan origination, late payments, and insufficient funds. However, Best Egg's fees tend to be slightly lower than Prosper's.
- Approval Process. Best Egg's approval process is relatively quick, and borrowers can receive funds as soon as the next business day. Prosper's approval process can take up to a week or longer.
- Eligibility Criteria. Best Egg requires a minimum credit score of 640, while Prosper requires a minimum credit score of 620. However, Best Egg may be more lenient with borrowers who have less-than-perfect credit histories.
- Availability. Best Egg operates in all states except for Iowa, Vermont, and West Virginia, while Prosper operates in all states except for Iowa, North Dakota, and Maine.
Ultimately, the choice between Prosper and Best Egg depends on your individual needs and preferences. If you're looking for a personal loan with a focus on debt consolidation, Best Egg may be a better option. Prosper may be a better fit if you're looking for a more traditional personal loan with flexible terms. It's important to compare the features, fees, and loan options of both platforms before making a decision.
