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Personal Loans

Prosper Personal Loans Review

at Prosper’s secure website
Editorial Rating

Editorial Rating

What we like:

Quick application process

Rates (APR)6.95%35.99%
Loan Terms2 – 5 years
Loan Amounts$2,000 – $50,000
FeesOrigination fee: 1% – 7.99%
See how Prosper’s personal loan product stacks up with other options

Prosper was founded in 2005 and was one of the country’s first peer-to-peer lending marketplaces. This means Prosper doesn’t issue its own loans but instead facilitates a connection between borrowers and individuals who wish to invest in their loans.

Borrowers apply for financing and receive loan offers which they can accept or deny. Individuals with Prosper accounts provide the funding for the loan at the agreed-upon terms.

This Prosper loan review will tell you what you need to know to decide if it’s the right option for you.

In this review:

Prosper personal loans: At a glance

Proper Personal Loans
Loan amounts$2,000 – $50,000
Term lengths2 – 5 years
APRs6.95% – 35.99%
Origination fee1% – 7.99%
Prepayment fee$0
Minimum credit score560

Prosper has facilitated more than $14 billion in loans to more than 870,000 borrowers, so it’s an established leader in the peer-to-peer lending industry.

Borrowers with Prosper repay loans on a set schedule. Loans can be used for virtually any purpose, including home improvement, debt consolidation, and medical or dental expenses.

Borrowers make loan payments directly through Prosper, which facilitates the management of the loan. There are no prepayment penalties, but Prosper does charge an origination fee.

Prosper could be a great lender for you if you’re looking for a loan at a competitive rate, especially if you don’t have an excellent credit score. But it’s important to understand the terms of the loan carefully to make sure you’re getting the best deal.

Pros & cons of Prosper personal loans


  • No prepayment penalties

    No fee for repaying your loan early. This gives you the flexibility to become debt-free faster.

  • You can qualify even if you don’t have good credit

    Prosper’s minimum credit score to apply for a loan is 560.

  • You have a choice of repayment terms

    You can choose a repayment term between 2 and 5 years.

  • You can use the funds for almost anything

    While many people take out Prosper loans as debt consolidation loans, you can also use the money for various other purposes, including home improvement, buying a car, paying for school, making big purchases, or paying for your wedding.


  • You’ll have to pay an origination fee

    Since this fee could run high, you could lose a large chunk of your borrowed money.

  • Same-day funds are not available

    You may have to wait to receive funds for three to four business days.

Applying for a Prosper personal loan

Getting a loan through Prosper is simple thanks to a quick and easy online application process. You can apply for a loan directly from Prosper’s website, and you actually have the option to check your rate before submitting a full application.

This is beneficial because you will not get a hard inquiry on your credit report when you check your rate, so your credit score won’t be affected. When you have too many hard inquiries on your credit report, your score can go down, so avoiding an unnecessary inquiry is important.

What you need to apply

When you apply online, you’ll need to provide details about:

  • The amount you want to borrow
  • Your Social Security number
  • Your employment status
  • Your income
  • Current debts you owe and the payments you’re making on them
  • Your monthly housing costs

Prosper will use your information to determine your debt-to-income ratio and overall creditworthiness, then process your loan application based on that data.

Once you have been approved, you’ll receive offers for loans with different repayment terms and interest rates. You can choose the one that works best for you. After you’ve accepted a loan offer, Prosper will deposit the loaned funds directly into your bank account via direct deposit.

This process usually takes around five days. Prosper’s origination fee, which is between 2.41% – 5.00%, depending upon your Prosper rating, will be deducted from the loaned funds.

Once you’ve received the funds, you will need to begin repaying your loan on the agreed-upon terms. Your monthly payments will remain the same for the life of the loan and can be made directly through Prosper.

Where to find Prosper alternatives

Prosper Personal Loans can be a great choice, both for borrowers with good credit and for borrowers who need a little more leeway in credit score requirements.

However, the origination fee is a big upfront cost that reduces the amount of funding you get, so be sure to comparison shop, and other lenders offer better rates for those with great credit.

So, we recommend comparing quotes from several of the best personal loans before committing to one. This ensures you find the most affordable option for you after factoring in both rates and upfront costs. You might also be interested in our comparisons of LendingClub vs. Prosper personal loans and SoFi vs. Prosper personal loans, or, you can check out our guide to Prosper alternatives.