It helps people who need money for various reasons like medical emergencies, unexpected expenses, and home improvement. Also, the company has received a lot of positive feedback from consumers and lenders alike. The peer-to-peer lending platform has also been recognized for its accessibility which helps people get the money they need when they need it most.
Prosper Personal Loan Interest Rates and Fees
Interest Rate: Prosper offers 7.95% to 35.99% interest rates. And unlike other online lending companies, this peer-to-peer lending platform doesn’t give an interest rate discount if the borrower signs with autopay.
Origination fees: Prosper charges borrowers with origination fees to cover the cost of administration activities, advertising, and processing of applications. The origination fee amounts to 2.41% to 5% of the principal loan amount. Also, the fee is depending on some factors like the creditworthiness or loan term of the borrower.
Late payment and prepayment fees: A late payment fee of $15 or 5% of the principal amount, whichever is higher, is charged to the borrower every day if they weren’t able to pay the monthly reimbursement fee for more than 15 days above. On the other hand, Prosper doesn’t charge prepayment fees and a loan payoff quote is accessible to the borrower’s online account dashboard.
Additional fees: Other fees of Prosper consists of an insufficient funds fee of $15 and a payment by mail fee of 5$.
To qualify for Prosper Personal Loans, applicants must have the following
Credit Score Required: One of the things Prosper does to know the credit score of an applicant is by depending on TransUnion. The latter provides information about the creditworthiness of a person. The credit score requirement of Prosper is 600 or above – making it a great lending platform for those who have fair credit and are in need of small to medium-sized loan amounts.
Income Required: Prosper doesn’t disclose the income requirements they prefer. But as of May 2021, most Prosper personal loan holder has an average annual income of $113,000.
How to apply for Prosper Personal Loans?
Prosper is a peer-to-peer lending platform that offers personal loans. It’s a good option for those who are looking for short-term financing. The application process is quick and easy and can be done online or by phone. The borrower will receive an initial decision within a matter of days after submitting their application, which allows them to start the process of getting the borrowed money as soon as possible. But before applying, it’s better if one is prepared by the following factors:
- Preferred interest rates
- Preferred loan terms and amount
- Documentation for verifying borrower’s identity
- Personal Information
Once the prequalification is finished – which can be done through submitting an application and choosing the loan amount, the borrower needs to wait for the approval. This process can take 2 to 3 days.
Assumed that the application was approved, receiving funds can take 3 days after approval.
Frequently Asked Questions:
Can I receive the funds in just a day?
- Accepted loans before 5 p.m. EST are funded the next business day as long as it’s within the working week. But if the loans are accepted after 5 p.m., the loan proceeds won’t be transferred the following or the second day. Keep in mind that there are also possibilities that the proceeds are delayed if it’s for education-related expenses.
Which is better Prosper or SoFi?
- If you need more money, SoFi is a better option as it can be up to $100,000. SoFi also has more competitive interest rates which are 20% lower than Prosper. Lastly, SoFi doesn’t have an origination fee, prepayment, or late fees. Meaning, Sofi is better than Prosper.
The Prosper Personal Loans’ popularity is attributable to its simplicity and ease of use, as well as its considerate interest rates and flexible repayment options. But, Prosper Personal Loans are designed for borrowers who need short-term cash or want to consolidate debt into a single loan with a lower interest rate than what they would pay at a bank.
It is undeniable that peer-to-peer lending platforms allow users to borrow and lend money from each other without the need for a bank or credit card company. These platforms have been able to offer personal loans at much lower rates than most banks and can help people get out of debt faster.