Best for:
- Debt consolidation
- Home improvement
Founded in 2005, Prosper is one of the biggest names in personal loans, making about 4,000 loans a week through a peer-to-peer lending platform that matches borrowers with investors. That’s more than 1.2 million loans to date, with more than $21 billion in loans funded.
Here’s everything you should know before considering a personal loan from Prosper.
In this post:
- Prosper interest rates and loan details
- Prosper personal loans review
- How Prosper compares to other lenders
- How to take out a personal loan with Prosper
- Things to consider before applying for a Prosper personal loan
Prosper interest rates and loan details
If you’re looking for a personal loan to consolidate debt or make home improvements, Prosper can be a good option.
Prosper offers personal loans ranging from $2,000 to $40,000 with a three- or five-year repayment term. Although a few lenders offer better rates on personal loans to borrowers with excellent credit, Prosper’s rates can be very competitive if your credit is good, but less than perfect.
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| Credible rating | 
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| Fixed rates |
6.99% - 35.99% APR
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| Loan amount | $2,000 to $50,000 |
| Loan terms | 2 to 5 years |
| Min. credit score | 640 |
| Time to get funds | As soon as one business day |
| Residency |
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| Fees |
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| Loan use | Debt consolidation, home improvement, bridge loans, car purchase, small business, baby and adoption, engagement ring, special occasions, solar and other “green” projects |
| Key benefits |
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| Best for: |
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Prosper personal loans review
Prosper operates a peer-to-peer, online loan marketplace where you can borrow money that’s provided by investors who pick and choose the loans they’d like to fund.
With a traditional personal loan lender, you borrow money directly from a bank, credit union, or online lender. With peer-to-peer lending, you borrow money from an investor through an online platform. You’ll never deal directly with the investor; the peer-to-peer lender facilitates the entire loan process.
If you meet Prosper’s minimum qualifications, your loan request will be evaluated and assigned a Prosper rating — a letter grade indicating how likely Prosper thinks it is that you’ll pay the loan back. The safer Prosper thinks the loan is, the lower the interest rate you’ll be offered.
To increase your chances of getting approved for a Prosper loan and getting a better interest rate, you can apply with a cosigner who has good credit. You can also focus on paying down existing debt, which will lower your credit utilization.
Learn More: How Personal Loans Affect Your Credit Score
Loan process
After your loan request has been verified, it will be listed until enough investors commit to funding it. If your loan isn’t funded after being listed for 14 days, no loan will be made. But you can create a new listing. On average, the process takes three to five business days from start to origination, according to Prosper.
Prosper says you can’t use one of its loans to pay for college expenses, because of rules governing student loans that aren’t compatible with its platform. With student loans, you have at least 30 days to accept or reject an offer after you’ve been approved. Prosper’s platform requires you to commit to obtaining and paying a loan if it’s funded by the end of the 14-day listing period.
Prosper’s relatively lengthy process means it might not be the best choice for emergencies. But with a little planning, a Prosper loan can be a good choice for debt consolidation or a home improvement project.
How to qualify
To be approved for a personal loan through Prosper’s online marketplace, you’ll need:
- A credit score of at least 640
- Fewer than five credit bureau inquiries in the last six months
- Some form of annual income
- A debt-to-income ratio that doesn’t exceed 50%
- At least three open trade lines on your credit report
- No bankruptcy filings in the last 12 months
You’ll also need to be a U.S. resident, but can’t live in Iowa or West Virginia.
Repayment
Prosper only offers two repayment terms — either three or five years. If you’re taking out a five-figure loan, your monthly payments may be easier to handle if you take five years instead of three to repay your debt. Just keep in mind that you’ll pay more in total interest if your term is longer.
Most borrowers authorize automatic monthly payments from a bank account, but you can also make payments online or over the phone. If you want to make payments by mailing a check, you’ll be assessed a fee of $5 or 5% of your payment, whichever is less.
How Prosper compares to other lenders
If you’re considering a personal loan for debt consolidation or home improvements, here’s how Proper stacks up against a couple lenders who offer similar loan amounts and APR ranges.
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
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| Fixed rates | 6.99% - 35.99% APR | 7.99% - 35.99% APR | 8.3% - 36.0% APR |
| Loan Amounts | $2,000 to $50,000 | $2,000 to $50,000 | $1,000 up to $40,000 |
If these three lenders aren’t right for you, Credible partners with 14 additional personal loan lenders who offer loans that you can use for nearly any purpose.
How to take out a personal loan with Prosper
If you don’t need the loan immediately, Prosper may be a good fit for you. Keep in mind that every lender uses its own methods to evaluate borrowers, so comparing rates from several lenders is a good way to find a loan that’s right for you.
To apply for a personal loan with Prosper, you can complete a form on the lender’s website or call to apply for a personal loan over the phone. You’ll need to provide some personal information to see your potential interest rate, including how much you want to borrow, what you intend to use the loan for, and whether you’re applying independently or with a cosigner. You may also need to submit documentation to verify your income, such as W-2 forms, pay stubs, and bank statements.
Once you review your loan offers and select one, you can receive your money as soon as one day after completing the necessary requirements.
Things to consider before applying for a Prosper personal loan
Prosper’s innovative platform does a good job connecting borrowers to investors who are willing to lend. But you do have to pay an origination fee, and the process can take longer than with other online lenders.
It’s important to shop around to find the best personal loan lender for you. Credible makes it easy to compare your rates with multiple lenders all at once.
You can use Credible to fill out a single form in two minutes and request prequalified rates from some of the best personal loan companies, including Prosper, without affecting your credit score.
Credible makes it easy to find the right loan for you.
Find My Rate
Checking rates won’t affect your credit
APRs presented are estimated and were created based upon information entered by the consumer and through analysis of information publicly available at Prosper.com. The estimated APR presented does not bind Prosper. The range of APRs available through Prosper is 6.99% to 35.99%. Only borrowers with excellent credit qualify for the lowest rate available. Your actual APR depends upon credit score, Prosper Rating, loan amount, loan term, credit usage and history. All loans are subject to credit review and approval. All personal loans made by WebBank, Member FDIC. For example, a two-year $10,000 personal loan would have an interest rate of 11.5% and a 4.00% origination fee for an annual percentage rate (APR) of 15.64% APR. You would receive $9,600 and make 24 scheduled monthly payments of $468.40. A three-year $10,000 personal loan would have an interest rate of 11.74% and a 5.00% origination fee for an annual percentage rate (APR) of 15.34% APR. You would receive $9,500 and make 36 scheduled monthly payments of $330.90. A four-year $10,000 personal loan would have an interest rate of 11.50% and a 5.00% origination fee for an annual percentage rate (APR) of 14.27% APR. You would receive $9,500 and make 48 scheduled monthly payments of $260.89. A five-year $10,000 personal loan would have an interest rate of 11.99% and a 5.00% origination fee with a 14.27% APR. You would receive $9,500 and make 60 scheduled monthly payments of $222.39. Origination fees vary between 1%-5%. Personal loan APRs through Prosper range from 6.99% to 35.99%, with the lowest rates for the most creditworthy borrowers. Eligibility for personal loans up to $50,000 depends on the information provided by the applicant in the application form. Eligibility for personal loans 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. **You may receive your funds one business day after your acceptance of the loan offer, completion of all necessary verification steps and final approval. One business day funding is also dependent on your bank’s ability to quickly process the transaction.
The company above is one of Credible’s approved partner lenders. Because they compete for your business through Credible, you can request prequalified rates from them by filling out a single form. Then, you can compare your available options side-by-side. Requesting prequalified rates is free and doesn’t affect your credit score. Credible receives compensation if you close a loan with one of our partner lenders. The rates you receive and the fees you pay (if any) are not impacted by this compensation.
About Rates and Terms: Rates for personal loans provided by lenders on the Credible platform range between 4.49%-35.99% APR with terms from 12 to 84 months. Rates presented include lender discounts for enrolling in autopay and loyalty programs, where applicable. Actual rates may be different from the rates advertised and/or shown and will be based on the lender’s eligibility criteria, which include factors such as credit score, loan amount, loan term, credit usage and history, and vary based on loan purpose. The lowest rates available typically require excellent credit, and for some lenders, may be reserved for specific loan purposes and/or shorter loan terms. The origination fee charged by the lenders on our platform ranges from 0% to 10%. Each lender has their own qualification criteria with respect to their autopay and loyalty discounts (e.g., some lenders require the borrower to elect autopay prior to loan funding in order to qualify for the autopay discount). All rates are determined by the lender and must be agreed upon between the borrower and the borrower’s chosen lender. For a loan of $10,000 with a three year repayment period, an interest rate of 7.99%, a $350 origination fee and an APR of 11.51%, the borrower will receive $9,650 at the time of loan funding and will make 36 monthly payments of $313.32. Assuming all on-time payments, and full performance of all terms and conditions of the loan contract and any discount programs enrolled in included in the APR/interest rate throughout the life of the loan, the borrower will pay a total of $11,279.43. As of March 12, 2019, none of the lenders on our platform require a down payment nor do they charge any prepayment penalties.
