Review of Prosper Personal Loan

Prosper Personal Loan

Prosper is one of the most reputed platforms to connect the borrowers from the lenders and be a strong niche in the sector of non-banking alternatives. The loan is a type of unsecured loan used for any purpose including paying off the debts, shopping, home renovation, or for any important asset purchase. However, the reason has to be mentioned in the loan application for an assured acceptance and easy processing.

Rates and Terms

  • Loan Amounts: $2,000 to $40,000
  • APR: 95% – 35.99%
  • Origination Fee: 2.4% to 5%.
  • Late fee: $15 or 5% of debt, whichever is greater
  • Insufficient Funds Fee: $15


  • There is no option to adjust or many any changes to your schedule of payment.
  • Prosper evaluates and verifies the credentials of all borrowers.
  • Prosper based on the evaluation assigns a rating of AA or A to E that defines higher the alphabet, higher the risk. It also assigns a rating of HR, known as ‘High Risk’.
  • You need to have a high credit score to qualify for this loan.
  • Loan terms are generally between three or five years.

Requirements for Eligibility

Like other loans and cards application, Prosper also has certain requirements for eligibility to borrow. All the applications need to have the following criteria:

  • There should be a minimum credit score of 640 and an average of 710.
  • You should have a minimum credit history of about two years with an average of 11 years.
  • You should have a minimum debt-to-income ratio of 50%.
  • You should have not filed any bankruptcy in the previous one year.
  • You should have an average annual income of $89,000.
  • You should have a minimum of three open traders attributed to your credit report.
  • You should not have any inquiries from credit bureau

Pros and Cons of Prosper personal Loan


There are many advantages of Prosper personal loans attracting individuals in debts or need of money to borrow the needed amount. Some of the key advantages are:

  • The loan features a unique feature of ‘Quick Invest’ that automatically invests your money without undergoing any manual checking and verifying of notes.
  • The profile of the borrower displays complete and detailed information.
  • The search filter is also beneficial to have an option to choose the best from the filtered search results.
  • If you are a previous borrower, the profile automatically displays in the system and the one with good standing is sure to get the application approved.
  • There is no fix increment for investment.
  • You have an option of having smaller amount of diversifying your notes.


  • The loan has high APR and hence the risk is comparatively higher than other similar online loans.
  • The range of options is less and you have only a couple of selections to choose.
  • There are certain restrictions concerning states, specific income range, and net worth to be an active participant of the Prosper loan.
  • Loan application acceptance and processing has a long period.