Loan Origination

What is loan origination?

Loan origination is just a fancy way of saying that a loan has started. Everything is lined up: the loan funds have been delivered to the borrower, interest is being charged on a daily basis, and every month the borrower will need to make a monthly payment.

What is the timeline for loan origination?

Because Prosper relies on the ACH (Automated Clearing House) method of electronic funds transfer for getting money to borrowers, loan origination takes at least 1-2 days (and can be held up if it's supposed to start on a weekend).

Once the listing has passed listing review, the origination date will typically be the first business day after passing listing review, assuming the listing is released before 3 PM PT. For example, if a listing is released on Monday before 3 PM, the loan will be created immediately (and be visible in your account), with an origination date on Tuesday. If the listing is released on a Friday before 3 PM, the origination date will not be until the following Monday. If the listing is released on a Friday after 3 PM, the origination date will not be until the following Tuesday.

How does the origination date relate to the monthly payment dates?

Loans which originate on a particular day of the month have their monthly payments due on that same day of the month for 36 months into the future. For example, a loan with an origination date of Jan 4 has its monthly payments due on Feb 4, Mar 4, Apr 4, etc.

Loans which originate on a day of the month which doesn't exist in future months will have their monthly payments due on the closest possible day of future months. For example, a loan with an origination date of Jan 31 has its monthly payments due on Feb 28 (during non-leap years), Mar 30, Apr 31, etc.

Learn more about borrower payments.

One of my loans has originated; what's next?

Once the loan has originated, you can monitor it from your account at any time. Learn more about loan management.

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