Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Personal Loans Prosper Personal Loans Review Updated Jun 23, 2023   |   5-min read Reviewed by Christy Rakoczy Reviewed by Christy Rakoczy Expertise: Student loans, mortgages, insurance Christy Rakoczy has been a personal finance and legal writer since 2008. She has a Juris Doctor degree from UCLA School of Law and was a college instructor before she began writing for the web. Learn more about Christy Rakoczy Learn Moreat Prosper’s secure websiteEditorial RatingEditorial RatingWhat we like:Quick application processRates (APR)6.95% – 35.99%Loan Terms3 or 5 yearsLoan Amounts$2,000 – $40,000FeesOrigination fee: 2.4% – 5%Prepayment penalty: NoneSee how Prosper’s personal loan product stacks up with other optionsCompare the Best Personal Loans 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 glancePros & cons of Prosper personal loansApplying for a Prosper loanWhere to find Prosper alternatives Prosper personal loans: At a glance Proper Personal LoansLoan amounts$2,000 – $40,000Term lengths36 or 60 monthsAPRs6.95% – 35.99%Origination fee2.41% – 5.00%Prepayment fee$0Minimum credit score640 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; medical or dental expenses; starting a business; buying a vehicle; or paying off credit card debt. 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 Pros A competitive APR Prosper provides loans at reasonable rates for many borrowers. 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 a perfect credit score Prosper’s minimum credit score to apply for a loan is 640, which is considered “fair” credit. You have a choice of repayment terms You can repay your loan over 36 or 60 months. While a longer repayment term allows you to keep monthly payments lower so they’re more affordable, you’ll pay more in interest over time since you pay back interest for a longer period. 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. Cons The maximum loan amount may not be high enough for some borrowers Prosper caps the amount you can borrow at $40,000. You’ll have to pay an origination fee Since this fee could run high, you could lose a large chunk of your borrowed money. It takes five days to get funds from the time you accept your loan offer If you need immediate access to cash, this may be too long to wait. 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 borrowYour Social Security numberYour employment statusYour incomeCurrent debts you owe and the payments you’re making on themYour 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. * For example, a three-year $10,000 loan with a Prosper Rating of AA would have an interest rate of 5.31% and a 2.41% origination fee for an annual percentage rate (APR) of 6.95% APR. You would receive $9,759 and make 36 scheduled monthly payments of $301.10. A five-year $10,000 loan with a Prosper Rating of A would have an interest rate of 8.39% and a 5.00% origination fee with a 10.59% APR. You would receive $9,500 and make 60 scheduled monthly payments of $204.64. Origination fees vary between 2.41%-5%. APRs through Prosper range from 6.95% (AA) to 35.99% (HR) for first-time borrowers, with the lowest rates for the most creditworthy borrowers. Eligibility for loans up to $40,000 depends on the information provided by the applicant in the application form. Eligibility 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. All loans made by WebBank, member FDIC.