Prosper Personal Loans Review for 2024

Prosper is a peer-to-peer lending platform based in San Francisco that has facilitated over $18 billion in loans since 2006. They offer personal loans and home equity lines of credit (HELOCs).

Borrowers can use Prosper personal loan proceeds for various purposes, such as debt consolidation, home improvement, auto loans, baby and adoption, or a special occasion. However, since Prosper is a marketplace platform, getting a personal loan isn’t as straightforward as working with a typical lender.


Once you apply, investors must make a financial commitment to reach your funding goal. As long as you reach 70% of your goal, your Prosper loan will be funded, but it can take a few days to hit that mark. However, if you’re able to wait for your loan funds instead of receiving them within a day or two, you may qualify for some attractive interest rates.

Prosper Personal Loans

Types of Loans Offered

Prosper offers a diverse range of personal loans to cater to borrowers with various financial needs. Here’s a closer look at the types of loans provided by Prosper:

Personal Loans

These are unsecured loans that can be used for a wide array of purposes, such as funding a vacation, paying for a wedding, or covering unexpected expenses. Personal loans offer flexibility, allowing borrowers to use the funds as they see fit.

Debt Consolidation Loans

Debt consolidation loans from Prosper can help borrowers simplify their finances by consolidating multiple high-interest debts into a single loan with a potentially lower interest rate. This can make managing debt easier and may even save borrowers money on interest payments over time.

Home Improvement Loans

Prosper’s home improvement loans are designed to help homeowners finance renovations, repairs, or upgrades to their properties. These loans can be a more affordable alternative to using credit cards or home equity lines of credit, as they often come with lower interest rates and fixed repayment terms.

Medical Loans

Medical loans from Prosper can be used to cover various healthcare-related expenses, such as medical procedures, dental work, or even fertility treatments. These loans can provide financial relief during challenging times, allowing borrowers to focus on their health and well-being.

Other Specialized Loans

In addition to the loan types mentioned above, Prosper offers specialized loans for specific purposes, such as financing a vehicle purchase, covering education expenses, or starting a small business. These loans are tailored to meet the unique needs of borrowers in various situations, making it easier for them to achieve their financial goals.

Loan Amounts and Terms

Prosper offers personal loans ranging from $2,000 to $40,000, with repayment terms of 36 or 60 months.

Interest Rates and Fees

Annual Percentage Rates (APRs)

Prosper’s APRs vary based on the borrower’s creditworthiness, with rates typically ranging from 7.95% to 35.99%.

Origination Fees

Prosper charges an origination fee between 2.41% and 5% of the loan amount, which is deducted from the loan proceeds before disbursement.

Prepayment Penalties

There are no prepayment penalties, so borrowers can pay off their loans early without incurring additional fees.

Late Payment Fees

Late payment fees may be assessed if a payment is not received within 15 days of the due date.

Get started with Prosper on Prosper’s secure website

Eligibility Requirements

Prosper has specific eligibility requirements that borrowers must meet to qualify for a personal loan. Here’s a more detailed look at these criteria:

Credit Score

Prosper requires a minimum credit score of 640 for loan approval, but the average borrower has a credit score of 710. A higher credit score may result in more favorable loan terms, such as lower interest rates. It’s important to note that while a credit score of 640 is the minimum requirement, borrowers with higher scores are more likely to be approved and receive better loan offers.


Borrowers must demonstrate a reliable source of income to qualify for a Prosper personal loan. This ensures that they have the financial means to repay the loan. Income can come from various sources, such as full-time or part-time employment, self-employment, retirement benefits, or rental income.

Employment Status

Prosper considers stable employment history as a crucial factor in loan approval. This means that borrowers should have a consistent work history, preferably with the same employer or within the same industry. A stable employment history indicates that borrowers are less likely to face financial difficulties due to job loss or income reduction, making them less risky for lenders.

Additional Factors

In addition to credit score, income, and employment status, Prosper may also consider other factors when evaluating loan applications. These factors include:

  1. Debt-to-income ratio (DTI): This is the percentage of a borrower’s monthly gross income that goes towards debt payments. A lower DTI indicates that a borrower has more disposable income available for loan repayments, which makes them a more attractive candidate for lenders.
  2. Credit history: Prosper may review the borrower’s credit history to assess their creditworthiness. A history of timely payments, a diverse mix of credit accounts, and a low credit utilization rate can improve the borrower’s chances of loan approval.
  3. Other factors: Prosper may also consider factors such as the borrower’s financial stability, the intended purpose of the loan, and the borrower’s overall financial situation when evaluating loan applications.

Applying for a Prosper Personal Loan

Online Application Process

The application process is straightforward and entirely online. Prospective borrowers can check their rates without affecting their credit scores.

Information and Documentation Required

During the application process, borrowers will need to provide personal information, employment details, and income verification. This may include pay stubs, tax returns, or bank statements.

Approval Process and Timeline

Loan approval decisions are typically made within a few business days, and funds are usually disbursed within one week of approval.

Loan Disbursement and Repayment

Loan proceeds are directly deposited into the borrower’s bank account. Repayments are made via automatic monthly payments from the same account.

Get started with Prosper on Prosper’s secure website

Pros of Prosper Personal Loans

  • Competitive interest rates: Borrowers with good to excellent credit can secure lower interest rates compared to other lenders.
  • Fast approval process: The online application and quick approval process make obtaining a loan convenient.
  • No prepayment penalties: Borrowers can pay off their personal loans early without incurring additional fees.
  • Variety of loan purposes: Prosper caters to a wide range of financial needs.
  • Joint applications: Borrowers can apply with a co-applicant, which may improve their chances of approval.

Cons of Prosper Personal Loans

  • Origination fees: The origination fees can increase the overall cost of borrowing.
  • Limited loan amounts: The maximum loan amount of $40,000 may not be sufficient for all borrowers.
  • Potentially high interest rates for lower credit scores: Borrowers with lower credit scores may face higher interest rates.
  • No co-signer option: Prosper does not offer the option to include a co-signer on loan applications.

Prosper Special Features

Prosper is partnering with Clarity Money to provide an app for users to manage their finances better. The app allows users to cancel unnecessary accounts and lower their bills.

And as long as you make your payments on time each month, you may be able to build your credit score with a Prosper loan because they report to all three credit bureaus. In addition, if you’re looking for a personal loan specifically to fund a medical procedure, Prosper has partnerships with providers to help their patients access credit.

Prosper Healthcare Lending helps providers offer their patients a financing option that could be an alternative to high-interest credit cards. You can get a loan approval decision in as little as two minutes.

Prosper’s History

Prosper began in 2005 and was the first peer-to-peer lending platform in the U.S. They’re dedicated to facilitating and servicing unsecured personal loans in a way that is beneficial to both borrowers and investors.

Currently, it’s a private company backed by prominent investors such as Sequoia Capital, Francisco Partners, Institutional Venture Partners, and the Credit Suisse NEXT Fund.

Comparing Prosper to Other Lenders

When considering a personal loan, it’s essential to compare Prosper to other lenders in the market.

Major Competitors

Some major competitors of Prosper include LendingClub, SoFi, and Upstart.

Interest Rates and Fees Comparison

Comparing interest rates and fees among various personal loan lenders can help you identify the most competitive option. While Prosper may offer competitive rates for borrowers with good credit, it’s essential to consider other lenders’ offerings to ensure the best deal.

Loan Terms and Eligibility Requirements Comparison

Different lenders have varying loan terms and eligibility requirements. Compare Prosper’s terms with those of other lenders to find the best fit for your needs.

Unique Features and Benefits Comparison

Each lender offers unique features and benefits, such as unemployment protection or discounts for existing customers. Take these factors into account when choosing a personal loan provider.

Prosper Reviews

Prosper has received a mix of customer reviews, reflecting the diverse experiences borrowers have had with the platform. Many customers appreciate the user-friendly online application process, which allows borrowers to apply for Prosper loans from the comfort of their homes and receive instant rate quotes.

Borrowers with good to excellent credit scores have reported receiving competitive interest rates, often lower than those offered by traditional banks. This makes Prosper an attractive option for debt consolidation, home improvements, or other major expenses.

Additionally, customers value the flexible loan terms ranging from 36 to 60 months, which allows them to choose a repayment plan that best suits their financial situation. Finally, numerous reviews mention the helpful and responsive customer support offered by Prosper.

However, some borrowers have reported negative experiences with the platform. The most common complaints include higher interest rates for those with lower credit scores, origination fees, and less leniency with late payments compared to traditional banks.

Prosper currently has a Better Business Bureau (BBB) rating of A+ with only around 50 customer complaints to the Consumer Financial Protection Bureau.

Who Should Consider Prosper Personal Loans

Prosper’s personal loans may be an ideal choice for:

  • Borrowers with good to excellent credit: These borrowers are more likely to secure competitive interest rates.
  • Those seeking debt consolidation: Prosper’s debt consolidation loans can help borrowers simplify their finances and potentially reduce their interest expenses.
  • Homeowners planning home improvements: Prosper’s home improvement loans can provide the necessary funds for renovations or repairs.
  • Borrowers seeking a quick and convenient application process: Prosper’s online platform makes applying for a loan fast and easy.

Final Thoughts

With competitive interest rates for borrowers with good credit, no prepayment penalties, and a quick approval process, Prosper loans can be an attractive choice for many borrowers

Once you weigh the pros and cons, you can go online for a pre-approval. Then, you can check your rate with just a soft credit check, so you don’t have to worry about any hard pulls affecting your credit report.

If you like what you can see, you can complete the application process and move into the funding portion. From start to finish, you’ll benefit from total transparency with Prosper.

Customer service can be reached via phone Monday through Saturday or via email at any time.

Get started with Prosper on Prosper’s secure website

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Meet the author

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