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Prosper – About The Lender
Prosper focuses on the mass market of borrowers and their personal loans can be used for a wide range of reasons. They also have a lending arm for medical costs, Prosper Healthcare Lending.
- Loan amount range: $2,000 – $40,000
- Interest rate rage: 6.95%-35.99%
- Terms: 36-60 months
- Origination fee: 2.4% – 5%
- Late payment fee: $15 or 5% of the amount due
- Returned payment fee: $15 or 5% of the amount due
- Prepayment fee: None
- Minimum credit score: 640
- Funding: Up to 14 days and then 1 to 3 days to deposit
- Personal information (including address, phone number, email, and SSN)
- Proof of Monthly income
Propser Loan Pros & Cons
What Can a Prosper Personal Loan Be Used For?
Prosper loans can be used for debt consolidation, home improvement, short-term and bridge loans, car purchases, baby expenses and adoption costs, engagement rings, small business costs, military loans, green loans, and special occasions
Prosper debt consolidation is paying off one or more prior unsecured loans with the new Prosper loan. Instead of multiple payments to multiple lenders you can create one payment to one lender. The advantage of a debt consolidation loan with Prosper is that the payment and term are fixed so you know exactly when you’ll be out of debt. The idea is that you can take a high revolving interest credit card and save money by replacing it with a low rate fixed installment
A Prosper home improvement loan is for home repairs or projects. The advantage of using a Prosper home improvement loan is the promptness of receiving the funds. Typically, it takes a month or more to get an equity line of credit on your home.
Prosper loans do not have any prepayment penalty and have short terms. Borrowers can use Prosper for short-term financing or as a bridge for any gaps in long-term financing. Or if borrowers find a better rate they can pay off the loan early without penalty.
Prosper allows their personal loans to be used for car purchases without using the car as collateral. Many times car loans are cheaper but if you are unable to get credit, Prosper may be a good option. Because many lenders require that the car be used as collateral, they will limit the type of car you can get. For example, with Prosper, you could use the loan to pay for a salvage title or classic car when with other lenders you wouldn’t be able to.
Prosper allows personal loans to be used for business use. Many other lenders only allow this type of loan for personal use. The loan can be used to purchase inventory, fund payroll, or pay for any other general business needs. It can help pay for your startup or fill gaps in financing when otherwise it can be difficult for a small business to get financing.
A Prosper loan for baby and adoption can be used to help manage medical bills for a new baby or legal bills for adoption. The cost of living increases when you have an addition to your family and a Prosper loan can help cover those costs
Prosper green loans are home improvement products that help your home become more energy efficient and environmentally friendly. Many green projects can cost a lot upfront but will help you save money, in the long run, every month on your energy costs. Prosper can help with the upfront cost through a green personal loan.
The application process is a little different with Prosper because you not only apply but also create a profile for potential investors to evaluate you as a risk and accordingly lend you money for a portion of the loan. You being the process by checking your rate through a soft pull.
Prosper will ask you some basic information and give you a couple of rate and loan options. Then you will need to provide more information so Prosper can do a hard pull or credit check. This is where they will get the information they need to give you your rate. You will create a quick profile explaining why you need the loan. Your listing will then be posted on Prosper’s marketplace for up to 14 days where investors will look at your profile and decide whether to invest in your loan. Many listings do not stay up for the entire 14 days.
After your loan is funded, Prosper may ask you for some verification information, such as state ID, social security card, and income. You will sign documents electronically for the loan and then the funds will be sent to your bank. It could take a few days after funding for Prosper to deposit the money in your account.
Prosper Loan is Best for..
Prosper marketplace is a great place to start in your personal loan search. They offer personal loans for a wide variety of purposes and to a large market of borrowers. They do have a high origination fee while other providers do not have one. The process will take longer than with other platforms, so if you need funds quickly Prosper may not be the right place to start your search.