The fees charged to borrowers and lenders are very straightforward. All of the fees are listed on this page. There are no fees to use the site, post a listing or place bids. Fees only result from obtaining a loan as a borrower or having your loan serviced as a lender.
If you are a borrower and your loan is funded, you will be charged a percentage of the amount borrowed or $75, whichever is greater.
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 take a loan for $5,000 you will be charged a $150 closing fee. You'd receive $4,850 in cash deposited into your bank account.
If a check or bank draft is returned, or an automated withdrawal fails, due to insufficient funds in your account, the closure, change or inaccessibility of your account without your having notified us, or for any other reason (other than an error by us), you'll be charged a fee of $15. Only one failed payment fee will be charged per payment period, and this fee is retained by Prosper.
If your monthly payment is 15 days late, you'll be charged a late fee of the greater of 5.00% of the unpaid installment amount, or $15. Late fees are passed on to lenders; Prosper does not retain late fees.
The annual servicing fee for is accrued daily, and is based on the current outstanding loan principal. This fee is accrued the same way that regular interest is accrued on the loan.
For Direct P2P loans the annual servicing fee is 1%. On a $5,000 loan at 10% interest, the servicing fee would be $80.70 over its full 3 year length. Because the servicing fee is based on the daily principal balance (which is an amortized value), it will change on a monthly basis, and the servicing fee for a loan will vary based on the interest rate and the length of the loan (if the borrower happens to pay it back in less than 3 years).
For Open Market loans, Prosper charges a 0.5% annual servicing fee. In addition, because Open Market loans are serviced by the loan seller that posted the Open Market loan listing, the loan seller charges its own servicing fee, which is shown in the Open Market listing. Both Prosper's servicing fee and the loan seller's servicing fee will reduce the effective yield of the Open Market loan below the stated interest rate of the loan. This reduction will be automatically taken into account when Prosper calculates the yield percentage during bidding on an Open Market listing.
In the event that one of your loans becomes more than 1 month late, Prosper will assign a professional collection agency to attempt to collect the overdue amount. Each collection agency has its own fee structure, but will only collect a fee for their services if funds are recovered. Learn more about collection agencies and their specific fees.