Prosper Marketplace Funding and Loan Options

Prosper Marketplace offers a range of funding and loan options to help you achieve your financial goals.

You can borrow anywhere from $2,000 to $40,000, with interest rates as low as 6.99% APR.

Loans on Prosper Marketplace are peer-to-peer, meaning that your loan is funded by a group of individual investors rather than a traditional bank.

This approach allows for more competitive interest rates and a faster application process.

A different take: Mortgage Marketplace Rates

Prosper Marketplace was founded in 2005, introducing a new approach to personal finance called peer-to-peer lending.

Prosper has helped over 2 million customers achieve financial well-being through a comprehensive suite of products.

Their flagship personal loan marketplace offers a unique value for borrowers and investors alike.

Prosper's mission is to meet people where they are in their financial journey, in order to advance their financial well-being.

Prosper offers a range of products, including personal loans, home equity loans, and lines of credit, as well as the Prosper Card.

All personal loans made by WebBank, while the Prosper Card is an unsecured credit card issued by Coastal Community Bank.

Prosper's home equity products are underwritten and issued by Prosper's Lending Partners.

Prosper Marketplace, Inc. is a registered company with the NMLS# 111473, and their licensing and disclosures can be found on the NMLS Consumer Access website.

Consider reading: Amazon Marketplace Payments on Credit Card Statement

Prosper makes one type of loan – personal loans – which can be used for a wide range of purposes, including debt consolidation, home improvement, and even special occasions like weddings.

These loans are fixed-rate, unsecured, and payable over three or five years, with no prepayment penalties. You can borrow between $2,000 (or $6,000 in Massachusetts) and $50,000.

Here are some examples of purposes for which you can use a Prosper loan:

Note that you cannot use a Prosper loan for postsecondary educational expenses due to a federal law designed to protect students.

Funding with Prosper is a complex process, but it can provide up to $5 billion in loan funding over two years.

A consortium of institutional investors, including affiliates of New Residential Investment Corp., Jefferies Group, and Third Point, will receive an equity stake in Prosper based on the volume of loans they purchase.

Prosper's funding deal is a significant development for the company, which has struggled in recent years.

The company originated $311.8 million in loans in the third quarter of 2016, down 71% from a year earlier.

Here's a breakdown of the loan funding process:

The origination fee for a Prosper loan is between 1% and 5% of the loan amount, which is deducted from the loan proceeds once your loan is funded.

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Prosper offers a range of loan options for various purposes.

You can use a Prosper personal loan for debt consolidation, home improvement, medical or dental expenses, business purposes, large purchases, household expenses, and more.

Some examples of specific purposes for loans include buying an automobile, motorcycle, recreational vehicle, or boat, paying for special occasions like engagement rings and weddings, and covering vacation costs.

Prosper loans are fixed-rate, unsecured, and payable over three or five years with no prepayment penalties.

The loan amount ranges from $2,000 (or $6,000 in Massachusetts) to $50,000.

Here are some examples of purposes for which you cannot use a Prosper loan:

Prosper does not offer loans for this purpose due to a federal law known as the Higher Education Opportunity Act.

In addition to standard loans, Prosper also offers a digital HELOC plan, which aims to streamline the application process and eliminate origination fees.

Prosper has been around for thirteen years, which is a long time in the world of the internet.

This experience and longevity have earned Prosper a BBB accreditation for the last 7 years, with an impressive A+ rating.

All loans originating through Prosper.com are made by WebBank, an industrial bank chartered in Utah and a member of the FDIC.

This adds a layer of security and legitimacy to the loans offered through Prosper.

With a five-year time limit on Prosper loans, your debt will be gone for good at the end of that term.

Applying for a loan with Prosper is a straightforward process. You'll create a loan listing, which includes basic information and a description of your loan purpose and financial situation. This listing will be reviewed by investors and will remain active for 14 days or until the loan funds.

Prosper uses Experian to determine your credit score, which must be at least 640 to qualify for a loan. Your credit score will depend on your credit report and score as provided by Experian, so any credit disputes must be resolved through Experian, not Prosper.

Consider reading: What Is Real Will Prosper?

To qualify for a loan, you'll also need to have a verifiable email address, a bank account, and a Social Security number. Your income must be verifiable, with pay stubs and W-2s required if you're employed, or copies of recent income tax returns if you're self-employed.

Here's a breakdown of the loan requirements:

Prosper loans are fixed-rate installment loans with a maximum term of five years, and there are no prepayment penalties. The origination fee is based on your risk grade and the term of your loan.

Prosper Marketplace has received evaluations from respected sources, including InvestorJunkie.com and Nerdwallet. InvestorJunkie.com owner Larry Ludwig found Prosper loans to be slightly riskier than Lending Club loans.

Reviews on Yelp and other platforms show a consistent pattern of complaints about poor customer service and communication. Larry Ludwig's hands-on experience with Prosper also highlighted this issue.

Nerdwallet's review of Prosper in 2015 was generally positive but noted that Prosper's personal loan approval process is more complicated than companies that fund loans with their own money. This could be a drawback for some borrowers.

Prosper usually serves borrowers with good credit profiles, which may have cheaper options available to them. This is according to Nerdwallet's review, which suggests that credit levels are a consideration when using Prosper.

Recommended read: Lendingclub Credit Score

Prosper Marketplace faced regulatory issues due to the sale of unregistered securities.

The company agreed to a $1 million penalty, which they paid to the states.

Prosper stopped issuing new loans and accepting new investors in mid-October 2008.

They are currently seeking registration with the U.S. Securities and Exchange Commission.

State securities regulators found that Prosper failed to provide investors with necessary information, such as the firm's financial statements.

Prosper's activity began in 2006, and during this time, they sold promissory notes with fixed annual interest rates ranging from 7 percent to 36 percent.

As of September 29, 2008, Prosper's website reported that it had 810,000 members and $175 million in loans funded.

Complaints against Prosper are a reality, but they're relatively rare considering the number of transactions they handle. Every business has complaints, even good ones.

Virtually every business in existence has complaints against it, but Prosper's lower loan ceiling is a notable drawback. They only offer loans up to $35,000.

Some users reported problems getting their documents to upload, but these complaints were rare. For most people consolidating credit card debt, this loan limit should be enough.

Deducting multiple payments from borrowers' accounts has been a concern, as reported by the Better Business Bureau. This issue is worth paying attention to.

Poor customer service and a lack of communication have been issues for some users, but they didn't occur in sufficient numbers to raise a red flag.

Prosper Marketplace Inc. entered a settlement with state securities regulators over the sale of unregistered securities, agreeing to pay a $1 million penalty.

The settlement was reached in December 2008, and Prosper was required to stop offering or selling any securities until it was in compliance with each jurisdiction's securities registration laws.

Prosper provided a private online lending marketplace where borrowers and lenders could find each other, and it conducted an electronic auction to fund unsecured promissory notes.

The notes issued by Prosper were considered securities, but they were not properly registered since Prosper's activity began in 2006.

State securities regulators found that Prosper failed to provide investors with necessary information, such as the firm's financial statements.

Prosper had offered and sold promissory notes with fixed annual interest rates ranging from 7 percent to 36 percent, amortized over a three-year term with equal monthly payments.

As of September 29, 2008, Prosper's website reported that it had 810,000 members and $175 million in loans funded.

The firm is currently seeking registration with the U.S. Securities and Exchange Commission.

You'll be assigned a credit grade from AA to HR based on your credit score and other information Prosper obtains.

Prosper's verification process is thorough, and your loan listing will stay active for 14 days or until the loan funds.

Here's a breakdown of the credit grades you can expect:

Once your loan is fully funded, you'll receive the funds directly into your bank account within days.