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Prosper Personal Loans: 2024 Review

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Sulaiman Abdur-Rahman
Sulaiman Abdur-RahmanUpdated January 2, 2024

Overview of Prosper

Prosper offers unsecured personal loans ranging from $2,000 to $40,000 through a peer-to-peer lending marketplace. Borrowers can choose loan terms ranging from two to five years. APRs on these loans can range from 7.95% to 35.99%. One of the major drawbacks with Prosper personal loans is borrowers may have to pay origination fees.The Takeaway: Prosper personal loans can be used for a variety of purposes, including debt consolidation or covering unexpected expenses. Getting a personal loan through Prosper’s peer-to-peer platform may be right for you if you need to borrow money quickly for any household purpose.

Pros and Cons of Prosper

ProsCons
• Loans can be used for a wide variety of household purposes• Can apply with joint applicant• No fee for paying off loan early• Charges origination fees and other fees • Loans cannot be used for postsecondary educational expenses• Loan amount cannot be changed once set

Pros of Prosper

As highlighted in the Prosper reviews above, customers generally appreciate the pros of Prosper personal loans. These loans can be used for a variety of purposes, including covering home improvement expenses and other large purchases. Prosper offers joint personal loans to co-borrowers, and there’s no prepayment penalty for paying the loan off early.

Cons of Prosper

Prosper may charge personal loan origination fees of up to 7.99% of the loan amount, plus late fees if you fail to make required payments within 15 days after your due date. Prosper personal loans cannot be used for postsecondary educational expenses, because Prosper’s lending platform is not compatible with federal laws regulating private education loans. Prosper doesn’t allow applicants to edit their requested loan amount upon submitting the application.

Prosper Personal Loan Terms, Rates, and Fees

Loan amounts: $2,000 to $40,000APR range: 7.95% to 35.99%Loan terms: Two to five yearsPrepayment penalty: NoApplication fee: Origination fee can range from 1% to 7.99% of the loan amountCo-borrowers allowed: YesApproval speed: Personal loan preapproval within minutes, funding can be received within one business dayInformation accurate as of Jan. 2, 2024.

Who May a Prosper Personal Loan Be Right For?

A Prosper personal loan may be right for the following demographics:
  • Consumers who need to borrow a $2,000 personal loan
  • Borrowers seeking a $4K loan for unexpected expenses
  • Borrowers who need quick personal loans from a legitimate lender rather than a loan shark
  • Consumers who need vacation loans to help cover travel-related expenses

Who Prosper May Not Be Right For

A Prosper personal loan may not be right for the following demographics:

What to Watch Out for With Prosper Personal Loans

Here are aspects to watch out for with Prosper personal loans:
  • These quick personal loans may charge APRs as high as 35.99%
  • Prosper personal loans cannot be used as private education consumer loans
  • Failing to pay and defaulting on a personal loan can have a major impact on your credit score
  • There’s no guarantee that your loan request will receive full funding from Prosper’s investors

Prosper Personal Loan Eligibility Requirements

Prosper personal loans may have the following loan eligibility requirements:
  • At least 18 years of age
  • Have a personal U.S. bank account
  • Have a Social Security number
  • Meet minimum underwriting standards (640+ credit score)
  • Borrowers and co-borrowers must be U.S. residents in a state where loans through Prosper are available (not available to borrowers residing in Iowa or West Virginia)
Recommended: 5 Typical Personal Loan Requirements

Repayment Options for Prosper Personal Loans

Here are some loan repayment options that may be available to Prosper customers:
  • Automated recurring payments
  • Manual one-time payments online
  • Payments over the phone
  • Mailing a personal check, money order, or cashier’s check
Recommended: Defaulting on a Personal Loan: How to Avoid It

How to Apply for a Prosper Personal Loan

  1. Apply online. Get started by answering basic questions on a digital platform, including how much money you would like to borrow and your reason for the loan. Checking to see whether you prequalify for funding through Prosper’s platform won’t affect your credit score. Selecting and moving forward with a loan application, however, can trigger a hard inquiry that may cause your credit score to drop by several points.
  2. Verify information. Prosper may request applicants and co-applicants to provide additional supporting documents for verification purposes. You may need to provide proof of identity, such as a current driver’s license, passport, or other government-issued photo identification card. Prosper may decline your application if it is unable to independently verify the information in your documents.
  3. Accept the loan. Approved applicants may accept the loan offer at this stage. Borrowers may receive their Prosper personal loan funds within one business day. In some cases it may take up to three business days to receive funding in your bank account. It’s your choice whether to accept the loan or cancel the loan application.

Alternatives to Prosper Personal Loans to Consider

Prosper personal loans have pros and cons, as discussed, so it can be smart to compare lenders when searching for online personal loans:
LenderLoan amountsAPR rangeMaximum term
Achieve (formerly FreedomPlus)$10,000 to $50,0008.99% to 35.99%60 months
Avant$2,000 to $35,0009.95% to 35.99%60 months
Best Egg$2,000 to $50,0007.99% to 35.99%60 months
LendingClub$1,000 to $40,0009.57% to 36%60 months
LendingPoint$[LDC_PL_lendingpoint_minAmount] to $[LDC_PL_lendingpoint_maxAmount][LDC_PL_lendingpoint_minApr]% to [LDC_PL_lendingpoint_maxApr]%[LDC_PL_lendingpoint_term]
OneMain Financial$1,500 to $20,00018% to 35.99%60 months
Prosper$2,000 to $40,0007.95% to 35.99%60 months
Universal Credit$1,000 to $50,00011.69% to 35.99%60 months
Upgrade$1,000 to $50,0008.49% to 35.99%60 months
(The above information on APR range, loan amounts, and maximum term lengths will be updated weekly, every Monday.)Some other options you might want to consider include:With Lantern by SoFi, you can quickly and easily compare personal loan offers from multiple lenders, including Prosper, all in one place. Just fill out one simple form, explore your financing options, and apply for a personal loan that fits your needs.

Frequently Asked Questions

Are Prosper loans legitimate?
What is the minimum credit score for a Prosper loan?
Are Prosper and Upstart the same?

About the Author

Sulaiman Abdur-Rahman
Sulaiman Abdur-RahmanSulaiman Abdur-Rahman writes about personal loans, auto loans, student loans, and other personal finance topics for Lantern. He’s the recipient of more than 10 journalism awards and served as a New Jersey Society of Professional Journalists board member. An alumnus of the Philadelphia-based Temple University, Abdur-Rahman is a strong advocate of the First Amendment and freedom of speech.
Brand namesNo brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third party trademarks referenced herein are property of their respective owners.
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