Prosper, the first online lending marketplace in the United States, gives borrowers access to collateral-free, personal loans at low, fixed rates. The company is based in San Francisco, California and has helped facilitate over $10 billion dollars in personal loans to date.
Prosper gives borrowers access to fixed rate, unsecured loans from $2,000 to $35,000. Rates range from 5.99% to 36.00% APR, depending on loan amount and creditworthiness. There are no hidden fees and you can pay off the loan early with no penalty.
Prosper generates income by charging borrowers a one-time origination fee for every loan and a servicing fee to investors. Every borrower must pay an origination fee* that ranges from 1% to 5% of the loan amount and is deducted at the beginning of the loan. For instance, if you borrow $5,000 and have a 5% origination fee, you will only receive $4,500, but you will have to pay interest on the whole $5,000. Consider this when deciding how much you need to borrow.
Loans through Prosper do not require any collateral, and you can use the money for practically any purpose: including debt consolidation, a large purchase, or a special occaision. There are no prepayment penalties, so the sooner you pay off the loan, the less interest you will pay. Once your loan is approved, your funds are deposited directly into your bank account in as little as a few days.
Only borrowers with excellent credit qualify for the lowest rate available. Your actual APR depends upon credit score, Prosper rating, loan amount, loan term, credit usage and history (Applicant must be at least 18 years of age, Minimum FICO credit score of 640, and no bankruptcies filed within the last 12 months). All loans are subject to credit review and approval. All loans made by WebBank, member FDIC.
As a platform, Prosper connects borrowers with individual investors who can browse loans by FICO score, rating and term. If you are interested in becoming an investor, Prosper may be a good choice. There is potential for returns that can range from 6-8%.
Prosper provides access to a transparent and low-cost alternative to traditional loans by connecting people who need money with those who have money to invest. With an easy online application, no hidden fees or prepayment penalties, Prosper is a smart way to get the money you need and improve your financial well-being.