Prosper Review

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Company Profile

Prosper gives borrowers access to collateral-free, personal loans at low, fixed rates. They were the first online lending marketplace to launch in the United States in 2006 and have helped facilitate over $10 billion dollars in personal loans to date. Through Prosper, people with good credit can borrow up to $35,000 to help consolidate credit card debt and cover important life expenses, like remodeling their home or paying for medical expenses. With an easy online application, and no prepayment penalties, Prosper is a smart way to get the money you need and improve your financial well-being.

Service Profile

As a peer to peer lending company, isn’t really like a bank.  It is more of a match maker that provides a meeting point for individuals looking to invest money as loans with those who wish to borrow money.

•            More than $13 billion loans funded

•            9 out of 10 customers would recommend Prosper to friends or family**

•            Consolidate debt, finance a home improvement project or pay off medical expenses

•            Get your money in as few as 3 days - your monthly payment stays the same, with no surprises


All loans made by WebBank, member FDIC.

**Based on responses from randomly selected borrowers in good standing who received a loan from 01/01/2016 - 11/20/2016. Survey conducted was of a statistically significant sample size with a 95% confidence level and a 3.94% margin of error.

Offer Details 


•            Loan Amount: $2000-$40,000

•            APR: 6.95%-35.99%*

•            Terms: 3 or 5 Years (36 or 60 months*

•            Minimum FICO 640




*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.”

Countless borrowers have used this platform to save millions in interest. Similarly, many people have earned multiple what they would have made if they had saved their money in a regular bank account. 



1. Quick Invest

The Quick Invest feature on is highly beneficial to people looking to invest anything in the six figures but don’t want to keep checking every note. It allows you to ensure that your money earns maximum returns.

2. Loan Profile

The borrower profile on this platform is highly detailed, and provides more information than you would receive if you had decided to go with another P2P account.

3. Search Filters

In the same way, you get greater ability to fine-tune your search criteria. This allows you to locate loans that perfectly fit into your criteria. It comes with filters that will do away with any loan that does not meet your needs and requirements.

4. Loan History

Additionally, if you had previously used to get a loan, then your loan history will show up. Therefore, if you are in good standing, you will have higher chances of getting the money you wish to borrow.

5. Diversification

According to this platform, you only need 100 notes (around $2,500) for your portfolio to be properly diversified. This is a relatively small sum of money, especially considering the other peer to peer lending options out there in the marketplace. 

Similarly, you don’t need fixed increments to start investing. The notes simply require a minimum of $25. After that, you can invest any amount – even $1. On other platforms, you can only invest in fixed increments. 


1. Risk

However, is a bit riskier. The notes you can invest in this platform also come with higher APR than you would find on another P2P website.

2. Loans

In the same way, the pool of loans available on this platform is slightly smaller. If you are, therefore, looking for more loan options, you would be better placed to look elsewhere.

3. Limitations

Unfortunately, this website is not available everywhere. You must have a specific net worth and income, and live in certain jurisdictions for you to be allowed to participate in the lending/borrowing. 

Returns from has 7 main loan grades termed Prosper Ratings. These include:

- AA

- A

- B

- C

- D

- HR

AA has the lower risk while HR carries the highest (HR stands for High Risk). Rates start from 5.99% for 3 year AA loans and go all the way up to 31.72% for HR loans. For more details about these interest rates, please check the borrower help page at, go to ‘Applying for a Loan’ and click on ‘What are the loan interest rates?’ question.

Prosper, however, ranks borrowers uniquely in the sense that they have multiple loan grades. The Scores range from 1 to 11 and it works using an internally-developed system based on all borrowers’ payment history on the platform. The system uses the borrower’s credit information and this Score to determine the estimated loss rates and applicable interest rates.

Investor Eligibility 

As mentioned above, not everyone can invest through Prosper. The company maintains a list of basic requirements that all investors have to meet before they can be allowed to open a lending account. 

These requirements include, but are not limited to:

- Be 18+ years old and have a valid SS (Social Security) number and a savings or checking account

- Reside in any of the eligible states (Wyoming, Wisconsin, Virginia, West Virginia, Washington, Vermont, Utah, South Dakota, South Carolina, Rhode Island, Oregon, New York, New Hampshire, Nevada, Montana, Missouri, Mississippi, Minnesota, Michigan, Maine, Louisiana, Illinois, Idaho, Hawaii, Georgia, Florida, District of Columbia, Delaware, Connecticut, Colorado, California, and Alaska) 

How It Works 

Investing on this peer to peer lending platform is relatively simple. It will start after borrowers apply for loans. If the borrower meets the underwriting criteria (such as the minimum 640 FICO score), their loan application will be listed for investors. 

Prosper has two main platforms: fractional loan platforms and whole loan platforms. The latter is designed for large investors – including institutional investors and funds – and provides loans in their integrity. 

With the fractional loan platform, investors can invest in smaller portions of the loan requirement. Prosper allows investors to open accounts with a minimum of $25 – which also doubles up as the minimum investment you can make on any given loan. In this manner, investors get to build portfolios of loans by taking smaller fractions of every loan. 

Investor Diversification

Once you invest in the loan, the amount you submitted will be pooled with other investments to fully fund the loan. Provided this happens and the borrower meets all verification steps, then they will receive approval, minus an original fee (depending on the loan grade, this fee goes up to 4.95 percent of the loan amount).

Within 30 to 45 days of the loan approval, investors will start receiving payments through their account. This is because interest and principal payments are made monthly over the lifetime of the loan. 


Overall, Prosper ranks among the best 2 peer to peer lending platforms in the U.S. The website and platform executes at a high level and has really grown since 2013 when they received funding from Sequoia Capital. The company is perfect both for investors and for borrowers, and provides great returns for P2P lenders. If you wish to start borrowing or investing, please visit for more information.

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9.1 Our Score

Material Disclosure The operator of this website is not a lender, and we do not control and are not responsible for the actions of any lender. Not all lenders in our network can provide up to $5,000. The service is not available in all states. Residents of New York are not eligible to use the service to request a loan. We can’t guarantee that your request will be accepted by one of participating lenders. The service is absolutely free. We do not charge you for any service. You may exit the process at any step as you are under no obligation to accept the loan presented. For details on your loan please contact your lender directly. Credit Implications We do not make any loans or credit decisions. Our lenders may perform credit checks to determine your credit worthiness, credit standing and/or credit capacity. By submitting your request you agree to allow our lenders to verify your personal information and check your credit. Please be aware that missing a payment or making a late payment can negatively impact your credit score. Our lenders do not look at credit alone so a low score won't necessarily disqualify you. Our lenders also look at income and previous outstanding loans. APR Disclosure Your lender will provide you with the terms and fees of your loan, APR, repayment terms and costs prior to the execution of your loan documents. APRs and repayment terms provided by lenders may vary depending on specific criteria. Representative APRs range from 5.99% to 35.99%. Loans repayment period: minimum 6 months, maximum 72 months APR is based on the amount of your loan, cost of the loan, term of the loan, repayment amounts and timing of payments and payoff. APRs may be regulated by state and local laws. As we do not have access to the terms of your loan, so only lenders can provide you with information about your loan terms and rates, renewal policy and the implications of non-payment and late payment.