A Review of Prosper Loans

Many people may find themselves needing a personal loan for a variety of reasons throughout their life. Maybe they want to cover some medical expenses, do some home improvement, or even consolidate their other debts.

A personal loan is money borrowed from banks, online lenders, and other sources and your eligibility is determined by your income, debt, and credit history. While there are plenty of personal loan lenders out there, here’s everything you need to know about one specific lender: Prosper

What is Prosper?

Prosper was founded in 2005 and prides itself as the first US peer-to-peer lending marketplace. Unlike many other lenders, Prosper’s peer-to-peer lending allows borrowers and institutions to put money into another person’s loans and potentially gain money from that investment later. Since its inception, Prosper has funded $16 billion worth of loans. They offer fixed-rate, fixed-term, low-interest personal loans ranging from a minimum of $2,000 to a maximum of $40,000. 

If you choose Prosper loans, you’ll find a clear and easy repayment plan that lays out your one fixed monthly payment, how much you owe, and even the exact date you’ll finish repaying the loan. Additionally, there are no penalties incurred if you choose to pay off the loan sooner. Unfortunately, Prosper is not available in Iowa or West Virginia. 

Prosper logo

Your Loan, Tailored for You

Fixed rates starting at 7.95% APR
Visit Prosper

The Application Process

Prosper’s application process is straightforward, quick, and the pre-qualification check doesn’t affect your credit score. You start with entering the amount you’re looking to borrow into Prosper. After that, Prosper asks you a few questions, starting with what you’re looking to use your personal loan for. Options include: 

  • Consolidate your debt
  • Home improvement
  • Medical or dental expenses
  • Big purchases
  • Auto or motor expenses
  • Household expenses
  • Special occasions
  • Business expenses
  • Taxes
  • Vacation expenses
  • Baby and adoption expenses
  • Other

Once you select your reason, Prosper wants to know if it’s just you applying for the loan or if you have a co-borrower. If you do have a co-borrower, you may get better rates and both of you are equally responsible for the loan. 

Next, Prosper asks for your personal information, which includes: your name, date of birth, email address, home address, your primary source of income and how much you make, your monthly mortgage or rent payment, and phone number. Finally, you create an account with Prosper. 

With your information, Prosper generates a list of potential personal loan rates you may qualify for. You choose the loan that suits your financial situation the best. Once you select a loan, Prosper takes a deeper look at your credit history, income, and debt. Keep in mind, this is a hard credit check and does affect your credit score. If you qualify and Prosper approves your application, you get your loan through direct deposit to your bank account in as soon as three days. 

Eligibility Requirements

Of course, Prosper has a few eligibility requirements that you need to meet to get a personal loan from them. These requirements are:

  • Have at least a 640 credit score
  • No bankruptcies in the past year
  • Have less than a 50% debt-to-income ratio
  • Have less than five credit inquiries in the past six months
  • Be at least 18 years old
  • Have an existing bank account 
  • A Social Security number
  • Have at least three open trades on your credit report
  • Have an income of more than $0

Other Services Prosper Offers

Beyond personal loans, Prosper has a few other services you may be interested in. 

Prosper Invest

If you’re considering investing, Prosper has its own investing service. You can open two types of accounts: General Investment or Individual Retirement Account. With Prosper’s investment service, you can invest in individual loans or use their Auto Invest feature. Loans are rated from AA (low risk, low return) to HR (high risk, high return), so you know what you’re putting your money into and what your return may be. 

Home Equity Line of Credit (HELOC)

Through HELOC, you can use your home equity to qualify for up to a $300,000 credit line. There are two phases to Prosper’s HELOC: the Draw Period (up to 10 years) and then the Repayment Period (10 to 15 years). Using HELOC, you can borrow the amount you need and pay it back at a lower interest rate compared to a credit card or personal loan. 

Should You Get Prosper Loans?

One of the biggest benefits to using Prosper, besides its investment function, is its consolidation option. Prosper allows you to take your various debts and combines it into one payment, simplifying the repayment process and potentially getting you a lower interest rate.

Of course, there are many other reasons why you may want a personal loan, from affording a special occasion to medical expenses. Whatever the reason may be, Prosper is definitely a lender you should consider. 


Raptor Disclaimer: Not every loan lender is featured on our site, and we remind users that there are other opportunities available that we do not showcase. We encourage users to shop around to discover the choice that is best for them and maximize use of scholarships, grants, and federal aid options before resorting to loans.

Raptor may receive referral fees from featured lenders and marketplaces when a user selects a product from an advertiser or partner company on our site, though there is no additional cost to the user for selecting one of these loans. Some users may receive discounts when pursuing a loan through Raptor’s links.

The interest rates shown may or may not directly reflect the rates offered by these lenders and marketplaces, though we review the interest rate index weekly. Raptor uses information from the lenders and marketplaces and the information given from the user in regards to their interest in obtaining a loan. Loan information may be subject to change at any time. Although Raptor strives to provide the most accurate information available to the user, we assume no responsibility for typographical errors or missing information in the content provided.

Raptor is not a loan lender and does not assume responsibility for suggesting a loan to a user who may not be eligible for it. Rates, terms, conditions, eligibility, approval, and other considerations are the decisions of the lenders and may vary depending on which lender or marketplace the user selects. We urge users to carefully consider and review all loan options and terms before committing to taking out a loan. Above marks belong to their respective owners.

Prosper Disclaimer: For example, a three-year $10,000 personal loan would have an interest rate of 11.74% and a 5.00% origination fee for an annual percentage rate (APR) of 15.34% APR. You would receive $9,500 and make 36 scheduled monthly payments of $330.9. A five-year $10,000 personal loan would have an interest rate of 11.99% and a 5.00% origination fee with a 14.27% APR. You would receive $9,500 and make 60 scheduled monthly payments of $222.39. Origination fees vary between 2.41%-5%. Personal loan APRs through Prosper range from 7.95% to 35.99%, with the lowest rates for the most creditworthy borrowers.

Eligibility for personal loans up to $40,000 depends on the information provided by the applicant in the application form. Eligibility for personal loans 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 personal loans made by WebBank, Member FDIC.

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