Prosper Borrower Help

A new Prosper borrower must be a U.S. resident in a state where Prosper loans are available, and must have a bank account, a Social Security number, and a credit score of at least 640. Prosper uses Experian to obtain credit scores. Depending on their qualifications, approved borrowers can request unsecured loans from $2,000 to $25,000.

Prosper is available to borrowers in the following states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin and Wyoming.

At this time, Prosper is not available to borrowers in the following states: Iowa, Maine and North Dakota.

Prosper offers fixed rate, "fully amortizing*", unsecured loans from $2,000 to $25,000. Loan terms of 1, 3 and 5 years are available, depending upon Prosper Rating and loan amount. There are no penalties for paying off your loan early or for making partial prepayments.

Loan Terms

*"Fully amortizing" means that the loan balance is paid off through equal monthly payments (the final payment may vary slightly from your regular payment due to the daily accrual of interest and the effect of rounding).

Loan interest rates are set by Prosper and are based on factors including:

• Prosper Rating
• Expected loss rate
• Loan term
• Economic environment
• Competitive environment

Rates can change over time. The current interest rates are:

*** For example, if you take out a loan for $5,000 for three years and you have a Prosper Rating of B and no previous loans, your interest rate will be 17.68% (APR 21.37%) and your scheduled monthly payment will be $179.96.

Prosper loan amounts range from $2,000 to $25,000. The maximum loan amount for any borrower is determined by the borrower's Prosper Rating, as shown in the table below:

Note: In limited instances, the maximum loan amount may differ due to constraints based on other variables in the model

A listing is your request for a loan. Your listing will be displayed for investors to view. Not all listings become loans. Some listings don't get enough investors, and some borrowers withdraw their listings midway through the listing process. You will receive a loan if investors commit funds to your loan and your information has passed Prosper's verification process, as needed.

There are no fees for posting a borrower listing on Prosper. Fees are only charged if your loan is funded and money is transferred to you.

Closing fee
The closing fee is a percentage of the amount borrowed and varies by Prosper Rating:

The closing fee is taken from the loan immediately, before loan proceeds are transferred to your account. This means that if you're using your Prosper loan to purchase something specific (like a wedding dress), make sure you ask for enough to cover both the dress and the closing fee.

*** For example, if you have a Prosper Rating of B and take a loan for $5,000, then you will be charged a $247.50 closing fee. You will then receive $4,752.50 in cash deposited directly into your bank account. If you have a B rating and no previous loans and take a three year loan, your interest rate will be 17.68% (21.37% APR) and your scheduled monthly payment will be $179.96.

Special circumstances

$15 failed payment fee: A failed automated withdrawal, returned check, or bank draft will result in a fee of $15. Only one failed payment fee will be charged per payment period. This can be due to insufficient funds, a closed account, account changes that were not reported to Prosper, or for any other reason (other than an error by us). This fee is retained by Prosper.

Late payment fee: If a monthly payment is 15 days late, you'll be charged a late fee. Late fees are passed on to lenders. Prosper does not retain late fees.

View all fees

When you are confirming your listing, you will have two options for making your monthly payment. The first option is electronic funds transfer, which is the simplest method and the one preferred by lenders. The second option is bank draft. Most borrowers will select the electronic funds transfer option, which is secure and convenient.

If you select electronic funds transfer, Prosper will electronically deduct your monthly payment from your bank account on the due date. If you select bank draft as your method of payment, you are authorizing Prosper to write a check on a monthly basis on your behalf to cover your payment each month.

Your listing will end as soon as it is 100% funded or after 14 days, whichever comes first. Once the listing ends, Prosper must complete a loan review process before the loan is approved. Prosper may require additional documentation from you as part of this review. A prompt response will speed up the process. The Verification Stage, seen on your loan listing, serves as an indicator of your loan application's progress. Watch your Verification Stage closely and be sure to submit any requested information or documents as soon as possible. If all requirements are met, you will receive loan proceeds as early as two but possibly up to eight business days after the listing is fully funded.

When you join Prosper, we send an email to the address you gave us. In that email is a "verify my email address" link which you must click.

If you haven't received the email, first try checking your "spam," "bulk," or "junk" folder. You can request another verification email at any time by logging into your Prosper account, or you can change your email address in your profile.

For the safety and security of the marketplace, it is important that Prosper verifies that each member is 1) a real person, and 2) the same person they say they are. You will be required to provide your name, date of birth, Social Security number, address, and telephone number. Based upon this and other data, Prosper will verify your identity.

There are some cases in which legitimate people do not pass the Prosper identity verification process. If this happens to you, there is a possibility that our information about your identity is erroneous, or you have a fraud alert on your credit report. We will contact you and may ask for physical documents proving your identity.

Posting a listing will not affect your credit score if you do not receive a loan. An inquiry - which can affect your credit score - will be posted to your credit report only if your listing is funded and you book a borrower loan. If you post a listing and it is not funded and you do not receive a loan, you will not receive an inquiry on your credit report.

The Verification Stage is a 3-stage indicator of the progress of your Prosper loan application, based on Prosper's verification of your identity, information and documents you've submitted that are key to evaluating your loan. You can improve your Verification Stage by making sure you submit documents promptly so your loan application can be processed faster. Reaching Verification Stage 3 gives you a much better chance of receiving a loan.

The Verification Stage icons tell you and prospective investors how far along Prosper is in verifying the information you submitted, in order to process your loan application. The higher the Verification Stage, the more attractive your listing is to investors. You can help improve the Verification Stage by submitting required documents promptly upon request. This will help complete your loan application process sooner so you get your money faster.

The Verification Stage of your loan application is represented as an icon next to your Loan Listing on your My Accounts page; investors can view it as well on the Browse Listing and Loan Summary pages.

The Prosper Rating is a proprietary system used to maintain consistency when evaluating each listing. Prosper Ratings allow potential investors to easily consider a listing's level of credit risk because the rating represents an estimated average annualized loss rate range. In contrast, the Verification Stage is not a measure of potential credit risk. It is an indication of the progress of your loan application based on verification of required information and documents. Since the Verification Stage lets you know where your loan application stands in the verification process, consider it a helpful reminder to submit documents promptly, which will help you get your money faster.

Reaching Verification Stage 3 only indicates that Prosper has verified most of the information and documents you have submitted and does not guarantee that your loan will be funded. But the sooner your loan reaches Verification Stage 3, the sooner Prosper can complete processing, and the more likely it will be that the loan will originate.

Not necessarily; we may need more documentation. And please note that your Verification Stage can go backward if during our review we discover that we need additional information. For example, if we can only verify partial income for the year, we may have to request additional documents for a full year's income.

Keep an eye out for messages from Prosper regarding information and document requests, respond by submitting answers or documents promptly. This will help complete your loan application process so you get your money faster.

Yes, if during our review we discover that we need additional information. For example, if we can only verify partial income for the year, we may have to request additional documents for a full year's income.

The Prosper Rating is a letter that corresponds to an estimated loss rate range, which potential lenders use to help decide whether to fund your listing. Learn more about Prosper Ratings and estimated loss rates.

In addition to the Prosper Rating, your borrower listing will also show a credit score range based on your Experian Scorex PLUS^SM credit score.

If you disagree with your Prosper Rating or your credit report score range, make sure your Experian credit report is accurate. A free copy can be obtained once per year at www.annualcreditreport.com. View Prosper's policy on changes to borrower credit reports.

There are many different credit scores available from credit reporting agencies and no two scores are the same. These scoring models are algorithms that assess risk and are based on the information contained in credit reports. Scores differ because the information contained in credit reports is not consistent and because scores are built using different underlying populations. To produce the Prosper Rating, Prosper uses the Experian Scorex PLUS^SM credit score in addition to our own in-house custom score which was built on a population of Prosper borrowers and comparing their performance to information contained in credit reports.

Once you have set up your borrower account and passed Prosper's initial identity verification, you can create a borrower listing. Create a Listing Now.

Your listing will include what you need the loan for, how much you are looking to borrow, a Prosper Rating, and additional data from your credit report that helps lenders determine your likelihood of repaying your Prosper loan. A successful listing at Prosper is informative and carries a higher Prosper rating.

A good listing should answer the following questions in lenders' minds:

1. Have you historically repaid your debts?
2. Will your budget let you meet your loan payments? (You can show this by listing your income and expenses, and don't forget about any increased expenses you face after you get the borrower loan.)
3. Why do you want this loan?

Learn more about creating a successful listing with successful listing tips.

Once a borrower listing is active, you can't make changes to it. You can, however, withdraw your listing (from My Account), and create a new listing with your changes at any time before the 14-day listing period ends. There is no fee for withdrawing your listing and creating a new one. You may not withdraw your listing or cancel your loan request after the 14-day listing period ends.

You can withdraw your listing at any time until the loan is fully funded or the 14-day listing period ends. Please see the Borrower Registration Agreement for details.

When someone who knows you personally trusts you to pay them back, it provides a measure of credibility to your borrower listing. You can invite your family and friends to invest in your borrower loan, and that person will be sent an email from Prosper. If the person you invite is not a Prosper member, the email will provide a link to sign up and invest in your loan.

If a friend or family member partially invests in your loan, they will have the option of writing a recommendation for you that other potential lenders will see.

A federal law called the Higher Education Opportunity Act includes special requirements designed to protect students who take out "private education loans" to finance the cost of college, graduate school, vocational school, or other post-high-school education. A "private education loan" is any loan where the borrower specifically states that all or part of the proceeds will be used for "postsecondary educational expenses," which include tuition and fees, books, supplies, miscellaneous personal expenses, and room and board.

Prosper is unable to offer private education loans for postsecondary educational expenses because some of the rules in the federal law aren't compatible with our platform. Specifically, the law says that, once the lender approves a loan application, the borrower must have at least 30 days to accept or reject the offer. This rule is incompatible with Prosper's platform, which requires borrowers to commit to obtaining and repaying a loan in the amount specified if their loan is funded by the end of the listing period.

If your borrower listing runs out of time and has not yet received lender investments sufficient to fund the loan, no loan will be made. If you want to try again, you can withdraw your listing in My Account and create a new listing at no charge.

Prosper must complete the loan review process before we can transfer loan proceeds to your account. Prosper has the right to verify at any time the accuracy of all statements and information you provided when you registered and posted your listing. Prosper may ask you to send in documentation or call your bank or employer for verification. If Prosper needs documentation from you, you should be contacted within one business day after your listing is fully funded. Remember that you may not withdraw your listing after the loan is fully funded or the 14-day listing period ends.

Loan review helps protect lenders by verifying some or all of the information you provided while registering and creating your borrower listing. The review period lasts up to eight business days after the listing period ends, and any requested documentation must be provided in that period.

If documentation is needed during loan review, you will receive an email from Prosper with specific instructions about the documents needed. The documents needed are different from borrower to borrower, so make sure you pay special attention to the email.

Be sure to submit requested information and documents promptly so that Prosper can verify them as soon as possible. You can monitor the progress of your loan application by watching the Verification Stage icon on your My Accounts page. This can help get your loan application completed more quickly.

Follow the instructions in Prosper's email closely, and be sure to include the fax cover sheet attached to your email. If you do not use the printable fax cover sheet, it may delay the loan review. An email confirmation will be sent to you indicating that Prosper has received your fax.

If you are asked to provide proof of your income, the following documents can be used. Wage-earners (not self-employed) can provide a recent pay stub and Form W-2. Retired borrowers can provide a Form SSA-1099 and a Social Security benefits letter, or bank statements showing SSA direct deposits.

If Prosper does not receive the requested documents by the deadline indicated in our request, your borrower listing will be cancelled, you will not receive a borrower loan, and you may not be allowed to create a new listing. This is strict because it affects our lenders. It's simply unfair to ask dozens (sometimes hundreds) of lenders to keep their money tied up when they could have invested in another listing with a more responsive borrower. Therefore, it is crucial that you be as responsive as possible during the listing review process.

Your borrower loan proceeds should be available to you one to two business days after your loan is approved. Prosper transfers your loan proceeds to you electronically using the ACH (Automated Clearing House) banking network.

Interest on your borrower loan begins to accrue on the business day following the day Prosper initiates the funds transfer, which Prosper considers the funding date or loan date of your loan. Your first payment is due one month after your loan date. Your payment due date is the same day of the month as the loan date of the loan, or the closest possible day in future months where that date does not exist (for example, if your origination date was the 31st, your payment will be due on the 30th in months that are 30 days long).

It is possible to have more than one borrower loan; however, you must meet certain requirements. Also, because all outstanding Prosper loans are included in your $25,000 total loan limit, this means that your first Prosper loan will affect the maximum amount you can request in your second loan.

• In all cases, your active loans must be current.
• In all cases, your credit score at the time the second loan is requested must be >= 600.
• Prosper will not use credit information which is more than 30 days old, so you will get a new Prosper Rating, credit score and credit data when you create a listing for a second loan.
• A minimum number of months must have passed since your last loan was made, listed below.
• A minimum number of consecutive on-time payments must be made on your previous loan, listed below.
• If you have two loans, they will likely have two different payment dates (unless they happen to originate on the same day of the month), and will act independently regarding monthly payments and payment dates. Your loan payments cannot be combined.

Requirements by credit score range for second loans:

Note: Meeting all of the requirements listed above does not guarantee your second loan request will get funded.

If you have already paid off one or more Prosper loans and do not have any active Prosper loans, you can request another loan:

• Your credit score at the time of your new loan request must be >=600
• Prosper will not use credit information which is more than 30 days old, so you will get a new Prosper Rating, credit score, and credit data when you create your new listing

By default, your borrower loan is set up for monthly payments to be automatically deducted from your bank account on file. Prosper will send you an email reminder one week before your payment is due.

If you want to make an early monthly payment on your loan, you can go to "My Account > Borrowing" and click "Make payment." From there, you can make your next monthly payment, or pay off the entire loan balance.

Anytime you make a loan payment, funds are applied to your loan balances in this order:

1. Pay down failed payment fees, alternative payment fees, and accrued late fees
2. Pay down any accrued interest
3. Pay down the loan principal balance

1. Go to Accounts, click "Add a bank account" and follow the step-by-step process. As with all new bank accounts, you'll have to verify that you are the true account owner.
2. Once your account is verified, click "Edit primary accounts," and switch your primary bank account to this new bank account.
3. You may now remove your old bank account, and payments going forward will be taken from your new bank account (now your new "primary account").

To ensure that payments are processed in a timely and efficient manner and our investors receive payments when expected, your agreement with Prosper requires you to make your payments by an automatic withdrawal through an electronic fund transfer or bank draft. As a convenience to our borrowers and at our discretion, we currently accept phone and mail payments as well

If you would like to make a payment by phone, please call 1-866-615-6319. Please have your bank account and routing numbers on hand during the call. We cannot accept payments by credit or debit card. We do not currently charge for phone payments.

If you would like to make a payment by mail there is a $15 fee per payment received to cover the costs of manual processing. Please mail your check, money order, or cashier's check including the fee to:

Prosper Marketplace, Inc.
Attn: Payments Processing
268 Bush Street, Box 3134
San Francisco, CA 94104

Please include your first and last name and loan number on your checks.

Yes. If you are going to make a partial prepayment or pay off the total amount of your loan, go to "My Account >Borrowing" and click "Make Payment." There is never a fee for making prepayments or paying off your loan early. If you are paying off your loan in full, the principal balance, along with any interest accrued to the date on which the payment will be initiated (which may be one or more days in the future), will be added together to determine the amount required to pay off the loan.

Yes. Please contact customer support to assist you in cancelling the automatic monthly ACH payment and switching to monthly bank draft service.

No. Unfortunately, it's not possible to change your payment due date at this time.

The automatic monthly ACH or bank draft payment is always for the same amount. You can make an extra manual payment to pay down your borrower loan or pay off your loan in full. There are no prepayment fees, but to avoid a paper check fee, you should make your payment by going to "My account > Borrowing" and clicking "Make Payment."

If you are late on a borrower loan payment, your loan is considered delinquent, and failed payment and late fees may be assessed.

Each month, your monthly loan payment is automatically withdrawn from your bank account on file. If you receive an email from Prosper that your payment failed, it usually means that your account has insufficient funds, or that the bank account on file at Prosper is out of date or incorrect. In either case, you will need to pay a failed payment fee and can fix the problem with no further penalty by making a manual payment before you are 15 days past due. Make a payment now. If your bank account information is out of date, be sure to add a new bank account first.

If you can't make a payment, Prosper will follow the delinquency schedule. Please note that at all times interest continues to accrue on the principal balance of your loan.

If your borrower loan becomes more than 120 days past due (you missed the last 5 monthly payments), your loan will be considered "charged-off." This does not mean your loan has been excused or forgiven in any way–you are still obligated to make payments. When a loan is charged off, the entire balance is accelerated, meaning it is collectible in full as of the charge-off date.

Interest continues to accrue on the principal balance as usual. There are no changes to the interest rate or the way interest is accrued. Late fees are no longer assessed after charge-off.

If your loan is charged off, you will not be able to borrow from Prosper again, and your credit score may be negatively impacted.