Prosper Competitors and Alternatives
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Peer-to-peer lending is a relatively new way for consumers to borrow and invest money. These types of lending platforms remove the barrier of the traditional financial institution from the lending process and directly match borrowers with investors.
Prosper was the first peer-to-peer lender in the United States. Founded in 2006, Prosper has helped over 800,000 individuals borrow over $12 billion. Over the last few years, however, there have been an increasing number of Prosper competitors when it comes to personal loans and small business loans.
On this page:
- Compare Prosper Competitors for Personal Loans
- Personal Loan Reviews of Prosper Alternatives
- Getting a Personal Loan From Prosper
- Small Business Loan Review of a Prosper Alternative
Prosper Competitors: Personal Loan Comparison
Prosper Personal Loan Alternatives
Loans from $5,000 to $100,000 – Rate Beat Program
- Fixed rate loans from 4.99% APR
- Funds available as soon as the same day
Fast & secure process
- Factors like education and job history help you get a lower rate
- No prepayment penalty
Prosper Alternatives for Personal Loans
SoFi
Rates (APR)
5.74% – 16.99%
Loan Terms
2 – 7 years
Loan Amounts
$5,000 – $100,000
Unlike Prosper, SoFi is not a peer-to-peer lender that matches borrowers and investors. Funds for personal loans through SoFi come from its own funds, just like a traditional lender.
- Interest Rates: Fixed and variable rates from 6.26% to 14.87%
- Fees: None
- Minimum Credit Score: 660 but borrowers usually have a credit score over 700
- Term Length: 3 to 7 years
- Borrowing Amount: $5,000 to $100,000
- Disbursement Time: It can take up to 7 days from the time the loan application is complete in order to receive the funds.
Compared to Prosper, the loan terms are much more flexible and favorable at SoFi. The interest rates are lower, and SoFi doesn’t charge an origination fee.
Borrowers also have the ability to request a much larger loan at SoFi than they can at Prosper. The minimum loan amount and credit score, however, are considerably higher at SoFi.
Borrowers also get loan unemployment protection and financial counseling as members of SoFi.
Upstart
Rates (APR)
8.69% – 29.99%
Loan Terms
3 or 5 years
Loan Amounts
$1,000 – $50,000
Upstart personal loans are a particularly good option for young borrowers just out of college. Rather than simply taking into account credit score and credit history in the approval process, Upstart also considers the borrower’s future earning potential. So, education, area of study, and job history are also considered as part of the underwriting criteria.
- Interest Rates: Fixed rates between 8.69% and 29.99%
- Fees: Origination fees vary from 0% to 8% of the loan amount
- Minimum Credit Score: Not provided
- Term Length: 3 and 5 years
- Borrowing Amount: $1,000 to $50,000
- Disbursement Time: Funds may be available the next day
Borrowers can request a minimum of $1,000, and the origination fees and interest rates may be less than they are at Prosper.
LendingClub
Rates (APR)
6.95% – 35.89%
Loan Terms
3 – 5 years
Loan Amounts
Up to $40,000
Overall, the terms and loan process are fairly similar between LendingClub and Prosper. Both companies use peer-to-peer lending and simply act as an intermediary between a borrower and a third-party investor.
- Interest Rates: Fixed rates between 6.95% to 35.89%
- Fees: Origination fees vary from 1% to 6% of the loan amount
- Minimum Credit Score: Not provided
- Term Length: 3 and 5 years
- Borrowing Amount: Up to $40,000
- Disbursement Time: After submitting an application, it can take about 7 days for a borrower to receive the funds.
Getting a Personal Loan from Prosper
Rates (APR)
6.95% – 35.99%
Loan Terms
3 or 5 years
Loan Amounts
$2,000 – $40,000
Prosper is a pioneer in the peer-to-peer lending market, and as such, it has developed a sizeable pool of investors. They have developed a unique loan rating model that is not only based on a borrower’s credit score but also investor demand for the loan.
- Interest Rates: Fixed rate between 6.95% and 35.99%
- Fees: Origination fees vary from 2.41% to 5% of the loan amount and are dependent upon the borrower’s loan rating
- Minimum Credit Score: 640 but borrowers have an average credit score of 710
- Term Length: 3 to 5 years
- Borrowing Amount: $2,000 to $40,000
- Disbursement Time: Funds get transmitted to a borrower’s bank on the day of origination, but it can take one to three days for the receiving bank to make those funds available to the borrower.
The low end of the interest rate range is competitive in the market, but the high end is above most credit card interest rates. The origination fees are also high, and borrowers don’t have much flexibility in term length.
>>Read More: Best Personal Loan Rates & Companies
Prosper Alternative for Small Business Loans
Alternatives to Prosper Small Business Loans
- Fast, affordable business financing
- Get a decision at no cost and no obligation
- Rates starting at 4.99% APR
- Get a decision in minutes – without impacting your credit score
- Receive money in as fast as 24 hours
- Rates starting at 8.50% APR
Funding Circle
Rates (APR)
4.99% – 27.79%
Max. Loan Term
60 months
Max. Loan Amount
$500,000
Funding Circle is a peer-to-peer lender like Prosper, but it specializes in funding for small businesses. Interest rates are determined by the willingness of investors to fund the borrower’s request.
- Interest Rates: Fixed interest rates between 4.99% and 27.79%
- Fees: Origination fees vary from 0.99% to 6.99% of the loan amount
- Minimum Credit Score: Not provided
- Term Length: 6 months to 5 years
- Borrowing Amount: $25,000 to $500,000
- Disbursement Time: Funding is available in 5 days after the loan application is complete.
Borrowing costs are higher than they would be for business owners trying to get funding through an SBA loan, but the approval process is also much quicker and easier.
>>Read More: Best Small Business Loans
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