Prosper is an online peer-to-peer lending platform that provides fair and good credit borrowers with personal loans and in this prosper loans detailed guide, I will be revealing all you need to know about the Service and to have access to it.
However, the prosper personal loan is only accessible for individuals that reside in the United States and if you’re from Nigeria and need quick loan apps, simply Check out our various reviews on loan apps that are available for Nigerians.
Table of Contents
Prosper is a multipurpose platform that allows individuals to borrow money and as well as Invest money on the platform for a fixed returns over a specific period of time.
Through prosper platform, you can invest in each other in a way that is financially and socially rewarding. The platform was founded in 2005 as the first per-to-peer lending marketplace in the United States and since then, the platform has facilitated more than $19 billion in loans to more than 1,600,000 people.
The platform is backed by lending investors like Sequoia capital, Francisco Partners, institution venture partners and credit Suisse next fund.
Types Of loans available on prosper loans
The prosper loans allows you to take loan for different purposes and the room to specify what you intend to is the loan for has been created on the platform.
This will help the platform to fully understand what you intend to use the funds for, the type of loan/lender that will be a great fit for you.
On prosper loan, you can take a loan for debt consolidation, home improvement, business, vehicle, baby and adoption, household, expenses, large purchase, medical/dental, taxes, vacation, special occasion and others that can only be best described by you.
Prosper loans interest rate
Prosper loan gives a borrower, the opportunity to get a loan of $2,000 and up to $40,000 at a go and this will allows the borrowers to cover large and small expenses. The interest rate of prosper loan is 11% and a 5.00% origination fee with APR of 15.34%.
How Prosper Loan Interest Rate Is Been Calculated
On prosper loans, 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. As a borrower, you will receive $9,500 and make 36 scheduled monthly payments of $330.90.
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 will 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.
Prosper loan requirements
To qualify for a loan on prosper personal loan, you must meet up with some requirements and in this section, I will be listing out the requirements you must have, for you to be able to get a loan approval on prosper loan.
Bellow are the requirements:
1. You must be a citizen of United States and reside in the United States.
2. You must be of 18 years old and above to be able to apply for a loan on the platform.
3. You need a minimum credit score of 600 and borrower average of 722.
3. You must have NO bankruptcies filed within the past year.
4. You must provide social security number and a U.S. bank account.
5. Your credit bureau inquiries in the last six months should be fewer than five.
How To Apply For Prosper Loans
To apply for a loan on prosper personal loan, simply go to prosper.com and check your rate by sharing some of your information with the platform, this information will help them to determine the interest rate you have qualified for.
Once you get your rate, check the loan offers that are available for you, review the loan offers and choose the one that works best for you. Wait for the funds to be deposited to your account via direct deposit. Note that the money might take up to one business day to arrive to your bank account.
Prosper loan app
A lot of individuals are eager to get the prosper loan app installed on their mobile phone as it will makes the loan access and management easier for borrowers. But as at the moment if writing this report, proper loan doesn’t have any app for it’s users to manage their loan.
To manage and access your loan, the only option that Is available for now is the web option, register for and Account on prosper.com and manage your loan offer at any point in time.
Prosper loans review
In this section, I will be providing you with a full review of prosper personal loan and revealing more information about the platform. This will give you some tips to determine which one is the best for you, between the prosper loan and other lenders that are available.
Pros and cons of prosper loan
In this section of the prosper loan review, I will be outlining the pros and the cons of the platform. This is considered as the main review as it will provide all the information you need about the platform and helps you with what is good about the platform as compared to others and vice versa.
Pros of prosper loans
1. Offers wide range of loan amount: prosper loan provide individuals with access to loan amounts from $2000 to $40000.
2. Offers joint loan option: If you’re not qualify for a loan on the platform due to one reason or the other, you still have the chances to apply for a joint loan. Joint loan involves two individuals to apply for a loan together as joint applicant.
3. The platform is transparent to its users: the platform discloses rates, fees and terms on its website, reports payments to three credit bureaus, provides soft credit check for pre-qualification.
4. Good Customer Service: Though the app didn’t provides it’s users with mobile application to manage their loan, but have means to contact it’s consumer Service and get all issue resolved during the customer service hours.
5. Flexible Access to loan: Borrowers are allowed to apply for joint loan as explained in the previous part of this guide and as well gives it’s borrowers, the opportunity to change the payment due date.
Cons of prosper personal loans
Origination and late fees: On prosper loan, the borrowers may be charged an origination fee ranging from 2.41% to 5%. Many online lenders charge an origination fee that can slide a few hundred to a few thousand dollars off the loan amount once approved.
The platform has a late fee for loan payments more than 15 days past due. The fee is 5% of the monthly payment amount or $15, whichever is greater. This implies that, once you delay your Repayment for more than 15 days, you will pay extra $15 to as high as possible.
Absence of rate discount for autopay: Unlike some other lenders, Prosper does not offer an additional rate discount for setting up autopay. The discount usually ranges from 0.25 to 0.5 percentage points and helps borrowers to pay on time.
Limited term lengths: As a borrower, you can only choose a three- or five-year loan repayment term. Though this duration term is common for online lenders, but it doesn’t give you the option to choose a shorter term and pay less interest, or select a longer term to lower your monthly payments.
It can be considered as non-affordable to some extent: If we should considered the fact that the APRs are high among lenders targeting similar borrowers, the absence of rate discount for auto payments and the charges origination and late fees, then, it can be pronounced as not affordable as compared to others.
Prosper loan phone number
Below is the prosper loan phone number that you can call for enquiry as a borrower:
Open on Monday to Friday by 9am – 8pm (ET) and 6am – 5pm (PT)
Prosper loan Address
Prosper Marketplace Inc.
P.O. Box 886081
Los Angeles, CA 90088-6081
The address above is strictly for loan payments.
Below is the address for correspondence:
Prosper Funding LLC
221 Main Street, Suite 300
San Francisco, CA 94105
Above is all you need to know about the Prosper loan and having gone through the detailed guide, I am sure you should have fully understand how the platform works and how to access their services without any form of stress.