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Personal Loans

SoFi vs. Prosper: Personal Loan Comparison

SoFi and Prosper are two leading personal loan lenders that have been making waves in the online lending space. The question, however, is which one comes out on top? Because each company offers similar features, it can be difficult to determine which loan product is best.

This SoFi vs. Prosper comparison will break down the two loan products, so you can decide which would work best for your needs and your wallet.


SoFi Personal Loans

SoFi has grown exponentially since it was founded in 2011 to become one of the largest and most reliable providers of online loans in the nation. It offers a quick application process, low interest rates, and a number of unique borrower benefits.

You can get a prequalified rate from SoFi without incurring a hard credit inquiry, and there’s no obligation to take the loan if the rate is unsatisfactory or you have a change of heart.

You can learn more in our full SoFi Personal Loan review.

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Prosper Personal Loans

Like SoFi, Prosper’s personal loans can be obtained online and used for a wide variety of purposes, from debt consolidation to wedding loans to paying for a new car. What the money is used for is entirely up to you.

One of the key differences between SoFi and Prosper is that Prosper is a peer-to-peer (P2P) lender, meaning that individuals and small businesses may fund your loan rather than a large institutional investor.

Many see P2P lending as an innovative benefit since it helps put more money in the hands of regular people.

You can learn more in our Prosper Personal Loans review.

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Prosper vs. SoFi: Which is right for you?

Sometimes, it can be difficult to determine which lender is best for your unique situation. To help, we’ve broken down some scenarios where one lender may be more appropriate than the other.

If you have good credit: SoFi

If you have a good credit score, SoFi is likely the better option. As you can see from our ratings, SoFi is the overall better lender, and its low APRs and lack of required fees make it easy to understand why. Those with good credit may score lower rates than Prosper can provide.

If you want to help individual investors: Prosper

As we explained above, Prosper is a P2P lender, whereas SoFi takes a more institutional approach. If helping the little guy matters to you, Prosper may interest you. Individual investors and small businesses can join Prosper’s investing platform to fund the loans of borrowers like you.

This means more of the interest you pay on your loan may end up in the pockets of regular people, instead of a big bank.

If you want to avoid fees: SoFi

If you want to avoid fees (and who doesn’t) SoFi takes the cake. Prosper’s loans come with an origination fee of 2.41% – 5.00%, while SoFi doesn’t impose any required fees.

Of course, the most important factor to compare is the overall APRs you’re offered by each lender since APRs include fees and interest rates in one number.

If you need to borrow a small amount: Prosper

If you only need to borrow a small amount, Prosper is likely the better option. Prosper allows borrowers to take out a minimum loan of $2,000, whereas SoFi only allows a minimum loan of $5,000.

If you need a smaller loan amount than either lender offers, check out our guide to small personal loans.

If you need to borrow a very large amount: SoFi

If you need to borrow a very large amount, SoFi may be the only option. SoFi disburses loans of up to $100,000, while Prosper only offers up to $40,000.

If you need a short or long repayment term: SoFi

SoFi offers both a shorter and longer repayment term than Prosper. With SoFi, you can choose to repay your loan in as little as 24 months or as long as 84 months, while Prosper offers more limited repayment terms of 36 or 60 months.

The shorter repayment terms matter less, since you can always choose to pay off your loan early. However, if you plan to borrow a larger loan amount, a longer repayment term could be critical.

Where to find other lenders

If you choose to borrow from either of these lenders, you’re in good hands. However, they’re not your only options. If you’d like to see how SoFi stacks up against other personal loan lenders, check out our comparison of SoFi vs MarcusSoFi vs LendingClub, and SoFi vs LightStream.

If you want to compare Prosper to another lender, check out our guide to Prosper vs. LendingClub.

And don’t forget to compare either lender to our list of the best personal loan lenders to make sure you’re getting the best deal.