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Prosper Personal Loans: 2021 Review

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Susan Guillory
Susan GuilloryUpdated February 14, 2022

Overview of Prosper

Sometimes small business loans aren’t an option, maybe because your company hasn’t been in business for long enough or doesn’t have an established credit history. In that case, some  business owners choose to take out personal business loans, or loans designed for personal use to be utilized by a business.Prosper offers fixed-rate, unsecured personal loans for a variety of purposes, including for business use. Here’s an overview of Prosper personal loans, including some possible pros and cons:
Pros and cons


  • Loans can be used for a wide variety of purposes
  • Can apply with joint applicant
  • No fee for paying off loan early


  • Charges origination fees and other fees
  • High credit score requirements
  • Loan term cannot be changed once set

Prosper Personal Loan Terms, Rates, and Fees

Loan amounts: $2,000-$40,000APR range: 7.95%-35.99%Origination fee: 2.41%-5% (Updated as of 2/14/2022.)Minimum credit score: 640Time to funding: 1-3 business daysCo-borrower needed: No

Other Lenders

As you research low interest personal loans, be sure to explore these other lenders. Different lenders may offer distinct types of loans and rely on different factors to determine which applicants qualify for their loan products. 

What Types of Loans Does Prosper Offer?

Prosper personal business loans and personal loans cover a wide gamut of purposes—from debt consolidation to  home improvement, from medical use to starting a new small business. The credit score requirement is a bit higher than Prosper’s competitors at 640, so if you don’t have good to excellent credit, the rate available to you might be on the higher end of the spectrum.

Important to Keep in Mind

While not every lender charges an origination fee (used to cover the cost of managing the loan applications and lending), Prosper does. That 2.41% to 5% of the total personal loan amount will be deducted from the sum borrowed, so qualifying applicants may want to plan to borrow enough to cover both permissible expenses and the origination fee. (Updated 2/14/2022.)As well, Prosper charges the following fees as of Feb. 14, 2022: 
  • a check payment fee up to $5 if you opt out of digital payments
  • a late payment fee equal to the greater of 5% of the unpaid installment amount or $15 if your full monthly payment is not made within 15 days after its due date
  • an insufficient funds fee of $15, unless a lesser amount is required by applicable law

Applying for a Prosper Personal Loan

The Prosper pre-qualification process is largely short and sweet. You can check your rates online, by answering a few questions, or on the phone. Prosper then presents pre-qualified loan options to eligible applicants. 

Requirements for a Prosper Personal Loan

To potentially qualify for a personal loan with Prosper, you must be 18 years of age or older and a U.S. resident in a state where Prosper loans are available. You’ll also need a U.S. bank account and a Social Security number.Prosper also requires (among other factors):
  • 640+ credit score
  • Fewer than five credit bureau inquiries in the past six months
  • Debt-to-income ratio of 50% or less
  • At least three open trades reported on credit report
  • No bankruptcy in last 12 months

The Prosper Loan Application

The application appears fairly straightforward: choose the amount you want to borrow and identify the purpose for the loan. Then provide general information about yourself, as well as your monthly housing payment.Next you’ll be asked your employment status, annual income, and any other income you might receive. You can create a password so you can easily log in, and then you’ll be shown your loan offers, if you qualify. At this point, Prosper may need additional documentation to verify your income, and may contact your bank or employer. That process could take up to five days. Once approved, your funds should be deposited into your bank account within one to three business days.

The Bottom Line

Whether you’re looking for an unsecured personal loan for certain qualifying small business expenses or for another purpose, if you have decent credit, Prosper could provide competitive rates for your financing needs.Looking for more personal loan options? With Lantern's help, you can find the right one for you.

Frequently Asked Questions

Is Prosper a good lender?
What is the minimum credit score for a Prosper loan?
How long does Prosper take to approve a loan?
How do you qualify for a Prosper loan?
Can you pay a Prosper loan off early?
Do Prosper loans show up on your credit report?
How fast does Prosper fund?

About the Author

Susan Guillory
Susan GuillorySusan Guillory is the president of Egg Marketing, a content marketing firm based in San Diego. She’s written several business books, and has been published on sites including Forbes, AllBusiness, and Cision. She enjoys writing about business and personal credit, financial strategies, loans, and credit cards. Follow her on Twitter @eggmarketing.