Prosper Review
Compare Prosper to other peer-to-peer lenders The Loan Exchange and LendingClub. Learn about Prosper's features, fees, and rates, along with customer feedback.
Updated on October 7th, 2021
The SMB Guide is reader-supported. When you buy through links on our site, we may earn an affiliate commission. Learn more
Prosper is a peer-to-peer lending platform that helps individuals get fixed term, unsecured personal loans. Aside from providing access to small personal loans, users can also create an investment account with Prosper and search for and invest in personal loans for steady, monthly returns.
Pros and Cons:
Pros
- Easy online application.
- No prepayment penalties.
Cons
- Small loan amounts.
- Limited loan products.
- Additional fees.
Review:
Prosper is a peer-to-peer lending platform for borrowers and investors. Prosper allows for a very low minimum investment amount which is great for first-time investors.
Prosper is also an attractive option for potential borrowers looking for a small personal loan, offering a speedy application and funding process, reasonable interest rates, and no early repayment penalties.
Highlights:
- Fast and simple application process.
- No prepayment penalty.
- Option to invest with low minimum investment amount.
Shortcomings:
Prosper offers limited loan products: small, unsecured personal loans and home equity lines of credit (only in four states).
Reputation:
Prosper is BBB accredited and has an A+ rating. Customer reviews on Consumer Affairs are divided between those strongly advocating Prosper for fast and efficient processing, the convenience they offer, and for great customer service, and those expressing strong dissatisfaction with the application review process itself, reporting glitches and misinformation.
Rates:
Loan Type | Loan Amount | Interest Rate | Terms |
---|---|---|---|
Personal Loan | $2,000 - $40,000 | 6.95% - 35.99% | 3 or 5 year terms |
Fees:
Fee | Amount |
---|---|
Origination Fee | 2.4% - 5% |
Check Processing Fee | $5.00 or 5% of your payment, whichever is lesser |
Late Payment Fee | $15.00 or 5% of the unpaid monthly payment amount, whichever is greater |
Insufficient Funds Fee | $15.00 /returned or failed payment |

Prosper vs. The Loan Exchange:
Prosper and The Loan Exchange are very different in that Prosper only facilitates personal loan products while The Loan Exchange also provides access to substantial term loans for businesses. The Loan Exchange has more lenient borrower qualifications but may offer much higher rates than Prosper.
Prosper vs. The Loan Exchange Comaprison:
Offer | Prosper | The Loan Exchange | The Loan Exchange |
---|---|---|---|
Loan Type | Personal loan | Personal loan | Business loan |
Max. Loan Amount | $40,000 | $100,000 | $250,000 |
Terms | 3 or 5 years | 47 to 180 months | 6 to 120 months |
Interest Rate | 6.95% to 35.99% | From 13.33% | From 14.90% |
Min. Credit Score | 640 | 500 | 500 |

Prosper vs. LendingClub:
Depending on your loan needs, Prosper can be limiting as they only offer personal loans and home equity lines of credit (only in four states). LendingClub offers more financing options, including business loans and auto refinancing. Both offer personal loans up to $40,000 with 3 or 5-year terms and similar rates.
Prosper vs. LendingClub Comparison:
Offer | Prosper | LendingClub | LendingClub |
---|---|---|---|
Loan Type | Personal Loan | Personal Loan | Business Loan |
Max. Loan Amount | $40,000 | $40,000 | $500,000 |
Terms | 3 or 5 years | 3 or 5 years | 6 to 60 months |
Interest Rate | 6.95% to 35.99% | 6.95% to 35.89% | 9.77% to 35.71% |
Min. Credit Score | 640 | 600 | 640 |
Other Products:
Investing.
Users can earn money by investing in personal loans through Prosper. The average historical returns on Prosper investments are 5.1%. Investors can search for individual loans that meet their criteria and conveniently manage and track their investments using Prosper's user-friendly Invest app. The minimum investment amount is only $25.00.
Prosper at a Glance:
Loan Types | Personal loans, home equity lines of credit |
Max. Loan Amount | $40,000 |
Interest Rate | 6.95% to 35.99% |
Payment Terms | 3 or 5 years |
Payment Schedule | Monthly |
Customer Support | Phone and email |
Key Information:
Legal Name | Prosper Funding LLC |
Founder | |
Founding Date | Jan 01, 2005 |
Address | 221 Main Street, Suite 300, San Francisco, CA 94105 |
Number of Employees | 417 |
Number of Customers | 1000000 |
Telephone | |
Website |
FAQs:
Is Prosper a good lender?
Prosper is a good option for individuals who can't get credit with traditional financial institutions and are looking for a small amount of funding. Prosper offers unsecured personal loans with reasonable rates and no prepayment penalties.
Do Prosper loans hurt your credit?
You can check your rate with Prosper without it affecting your credit score as Prosper performs a soft pull.
Is Prosper better than LendingClub?
In comparison to LendingClub, Prosper is somewhat limited, as they only offer personal loans. LendingClub provides access to more loan products but has more stringent qualification requirements, aside from the minimum credit score requirement.
Can you pay off a Prosper loan early?
Yes, you can pay off a Prosper loan early. Prosper does not charge any prepayment penalties.
What fees does Prosper charge?
Prosper charges several additional fees, including an origination fee, check processing fee, late payment fee, and an insufficient funds fee for returned or failed payments.
Does Prosper charge an origination fee?
Yes, Prosper charges an origination fee of 2.4% to 5% of the total loan amount.
Does Prosper do a hard inquiry?
Prosper only performs a hard inquiry when a loan has been issued and accepted.
What documents are needed for a Prosper loan?
Prosper may request a copy of a current driver’s license, passport, or other government-issued photo identification card, recent paystubs, tax returns, or bank statements to verify an applicant's identification and income or employment.
How fast does Prosper fund?
According to Prosper, the average time in which their borrowers receive funds after accepting a loan offer is within five days.