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Prosper Loans is an online peer-to-peer lender marketplace that offers fast loans funded by individuals and investors. Prosper handles all loan servicing on behalf of borrowers and investors. Loans range from $2,000 to $40,000, and terms range from three to five years with a fixed interest rate. You can check your rate online instantly. The company does not charge a prepayment penalty if you pay off the loan early.
Pros & Cons
- No prepayment penalty
- No collateral
- Lower interest rates
- Check your rate for free
- Minimum FICO score of 640
- High origination fee
Prosper Loans provides convenient options for borrowers with good credit and has online applications, direct deposits, no collateral, and loans that can be used for many purposes.
I've taken 3 loans from Prosper over the last 5 years and have had a perfect experience every time. The first time I was buying my first car… The next time I had credit card debt ...Read full review
Great service and response. Very helpful and walked through the process in detail. I received call back and notifications. Didn't take more than a week. After submitting my reques...Read full review
What is Prosper loans?
Prosper offers multiple loan types, including debt consolidation, home improvement, short-term, bridge auto, small business, baby, adoption and engagement ring loans. Prosper Loans also offers HELOC (home equity line of credit) loans and green loans for financing solar energy or water conservation systems in your home.
Prosper deducts monthly payments from your account. If you decide to pay the loan off early, Prosper does not charge a penalty.
How does Prosper work?
Prosper loans are available online. Before you apply, you can check your rate without impacting your credit score. You’re asked to provide personal information when you apply, including:
- Your name
- Your address
- Your date of birth
- Identity verification
After you’ve provided this information, Prosper matches you with traditional lenders or individual investors that fit your needs. You choose the offer that works best for your situation, which could involve several lenders to meet the full amount you want to borrow. Once you select your loan, you receive funds in your bank account through direct deposit. Since the loan is unsecured, your signature is all that is needed to get the money — no collateral is required.
For HELOC loans, Prosper offers flexible access to your money and monthly repayment terms. You can see your rate and credit limit online in seconds, without impacting your credit score. Loan amounts are available up to $300,000. The bank pays closing costs on your HELOC (above $10,000) with Prosper.
Prosper loan rates
Prosper's interest rates vary based on the loan amount and your creditworthiness. Personal loan APRs are fixed and range from 7.95% to 35.99%, and customers with higher credit scores typically get lower rates.
Origination fees vary between 2.41% to 5%. HELOC rates start as low as 3.24% variable rate and range up to 10.35% after the introductory period.
How long does it take Prosper to approve a loan?
The application review process takes up to five business days.
Is Prosper a good lender?
Prosper works with FDIC-insured WebBank. Personal loan interest rates are fixed and competitive with similar loan types from other lenders. Prosper charges an origination fee of 5%, which can be higher than a traditional bank.
Does Prosper verify income?
Prosper verifies income for a subset of borrowers based on a proprietary algorithm. That means not every borrower’s income is verified, but some are. If you need to verify your income, Prosper asks for pay stubs, tax returns or bank statements.
How long do Prosper loans take?
Once approved, you could get your loan in as little as one to three business days. When your loan request is posted to the marketplace, it remains active for 14 days.
Can you pay off a Prosper loan early?
You can pay off a Prosper loan early with no prepayment penalty. You can also make additional payments on the principal amount during the month.
Is Prosper a good lender?
Borrowers who want relatively fast access to cash at reasonable rates with no collateral might benefit from Prosper’s services. Though the online application process is convenient and can be completed without visiting a bank or physical location, the Prosper loans verification process could take up to five days, which might be too much of a wait for those who need emergency funds.
» MORE: Is Prosper legit?
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Reviewed July 23, 2023
I currently have a loan with Prosper and have had 4 others in the past. The same bank account was used on all loans. I applied for a second loan and was made to do a bank verification over the phone which took well over an hour to complete. During the call, Prosper reached out to my bank and did a 3 way call to verify bank details. After completing the bank verification, the representative from Prosper started to provide my full social security number to the bank representative when I had to stop her. This is completely inappropriate to provide that number to a stranger without my consent and even the bank representative was shocked.
After terminating that call, she then said I would need to fax in a copy of my social security card for verification. Again, a very unsafe practice. Prosper needs to step up their security and I now regret working with them and my information being available, and no doubt, handled recklessly. Stay away from them and go with another lender.
Reviewed Oct. 30, 2022
Like others on here, I was preapproved, mine was $8,000. My Credit Score WAS 815. For reasons known only to scammers like Prosper, they hard-pulled my credit THREE TIMES. No, they were not given permission. Said I was approved, "Just sign these loan docs, here's your rate, amount financed, oh wait, it MUST be paid from your personal bank account, so you have to supply us with that. Don't worry, we'll deposit the funds in that account." Sounds legit. Input my personal banking. I've got everyone on here beat! Not 2 minutes, but 5 seconds later! Email came thru, they couldn't verify who I was or where I work or some other made-up **. On a Sunday. I worked as a Fraud Analyst for MC, Visa, Discover - there is absolutely NO WAY for the system to verify, all by itself, anything about you, such as your employer or income, in 5 seconds! Not even 5 minutes.
These are items that have layers and human input. I'd already provided all my personal info, my DL, my SS #, employer, address, phone, all contact, everything. As soon as they were provided my PERSONAL BANKING INFORMATION, they couldn't verify, um, something, it was not even specific. This seems to be some kind of a SCAM to STEAL our personal data. Plus, read all the POSITIVE REVIEWS online, something fishy there? None sound as if their first language is English, and there is an OVER abundance of positive reviews, for really no reason at all. Scam company, I never spoke to anyone, seems to be India. STAY AWAY. I will now get to sit and BABYSIT my bank account, waiting for them to try to STEAL from me.
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Reviewed Oct. 14, 2022
After spending over three hours going through technical glitches in the application process for a personal loan which I was preapproved for, I just got denied! I know I stated in in the preapproval process I had fair credit and I think I got denied because my score was below 640. Lucky I don't need their money but beware!!! You may not have a good chance even you're preapproved. I don't need their 35% APR so Prosper did me a favor actually. Strange with a good income and no late payments in 4 years or so. Just save money instead of trying to get a loan from sharks. Lesson learned.
Reviewed Sept. 28, 2022
Do not apply: very hard to understand the loan officer or customer service on the phone, they ask for all of these docs, and request for more docs & after denial, you're told to re-apply & upon trying to do so, they ask for more information than before. APR is so high & I'm glad I dodged this bullet of death. No one speaks good understanding English. Not worth it.
Reviewed Sept. 1, 2022
9/1/2022 Absolutely horrible. I sat and applied for the loan. Put my SS # and my bank info. I clicked submit. In less than 2 minutes I get an email saying my account was suspended and unable to obtain a loan. The reason was unable to verify my identity and employment.... How did this company even try to verify anything in under two minutes. My credit score is 720. AVOID THIS COMPANY. DO YOURSELF A FAVOR.
Reviewed Nov. 19, 2021
I was pre-approved for a loan. I filled out the paperwork and had the loan offer. I took two days to shop around for a lower rate. Upon returning to prosper I completed and signed my loan agreement. They ran my credit for a SECOND time and then denied me based on one issue: Too many credit inquiries in the recent year from similar companies. They were the ones who fill out my credit inquiry list. Web bank times 4 during the time I shopped for credit. This company needs to be avoided as they ruined my chance at receiving a personal loan from almost any company with all their extra inquires.
Reviewed June 23, 2021
I made a 0.8% return on my investment over a 3 year period when I first tried investing with Prosper. Many of the loans were sent to collections and I did not receive my investment back. I chose to mostly invest with lendees with at least a "B" rating, but even some of the "A" rated lendees did not pay and went to collections. I do not know how Prosper is investigating the lendees, but it does not reflect how likely they are to pay. The lender interface to view the investments is also misleading and make your investment return look better than it is. At the end of the 3-year period, the interface stated I made 3% on my money (still a horrible rate over 3 years), but when I did the calculation manually, I had only made .8%. You are much better off with traditional investments than trying to profit off of the debt of your fellow citizens.
Reviewed May 19, 2021
Please let this sink in. You need financial assistance and you take your chance with Prosper. You apply, and after a hard pull on your credit, Prosper tells you, "approved". You allow them access to your bank account and then provide a copy of your driver's license electronically, per their request. You wait. Two days later your loan is cancelled and you receive an email saying, "We could not verify identity". It is a scam to get your information. They know everything about you now. And, the sad thing is, they get away with it. Read the negative reviews. They are real.
Reviewed Dec. 25, 2020
DO NOT APPLY! I applied for a personal loan and agreed to ONE hard credit pull and now I am getting alerts that my credit has dropped 15-20 points due to multiple hard credit pulls from Prosper. Additionally, the company definitely should be investigated for falsely advertising. They sent me an email saying I was "approved" for a loan. NOT "pre-approved" or "pre-qualified", "APPROVED". Then, after submitting all my documents and information needed for a hard pull, I find out I wasn't actually approved yet and that everything I submitted was not meant to verify my information, but instead meant to be used for a loan approval process. NOT OKAY!
Reviewed Dec. 24, 2020
A short 3-year $8,000 loan is costing me total $19,226. Contract didn't list that!? Scam. Confusing victimizing contract. Loan shark. Victimizes low income people. Contacted Attorney General. Now spending $1,000+ on a lawyer. VERY ANGRY!!!
Prosper Company Information
- Company Name:
- Year Founded:
- 221 Main Street, Suite 300
- San Francisco
- Postal Code:
- United States
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