Online Investing and Peer-to-Peer Lending
A Great Way to Diversify While Investing in Real People
The Internet opened up a prosperous new world for investors. With peer-to-peer lending, you can safely diversify and customize your investments without a lot of effort or expertise. Prosper has created a marketplace of borrowers and investors that gives both a great alternative to traditional bank loans and Wall Street investments. Because we connect people directly, the high costs associated with banks and financial advisors are removed. Everyone prospers.
Online Investing with Prosper
Prosper offers several ways to invest, from the ability to select loans one-by-one to the use of Quick Invest which enables you to lend money across a spectrum of loans according to criteria you set. In this way, we keep your risk down and your potential returns high.
For more hands-on investors, we have Advanced Investing Tools that allow you to pick and choose who you lend to, one person at a time. Our affiliation with FOLIOfn Investments, Inc. gives you even more options: buy or sell existing Notes, and you can increase or liquidate your investments on the fly. These are just some of the ways we can offer you a viable path to healthy returns.
The Perfect Combination of Privacy and Transparency
You'll find that Prosper is different from other investment sources—different and better. One thing that sets us apart is that we offer transparency to our investors. We realize that you want to know all about the potential risks and rewards when you invest your money. We encourage our borrowers to describe their reasons for needing a loan when they create a listing. This allows investors to make decisions based on real people—not just numbers. At the same time, we supply investors with the financial background data on each borrower, without exposing their actual identity. It’s a perfect combination of privacy and transparency.
Our revolutionary belief in transparency has helped us become America's largest online lending marketplace. Since 2006, we've funded over $513,000,000 in loans... and we're not stopping there.
How Safe is My Investment?
Prosper makes every effort to provide you with a variety of historical information as well as information about borrowers such as credit details and debt-to-income ratio, allowing you to remain vigilant in your investing.
With any investment, there is risk. Investing through Prosper is not FDIC-insured, and there is a chance a borrower may default. You can use Quick Invest to allocate your funds to a variety of borrowers, so even if one goes into default, the impact on your return is buffered.
Back Fellow Americans and Contribute to a Stronger Economy
Investing through Prosper can offer you more than just stable returns. It's also an opportunity to strengthen our nation's economy.
You can help a hardworking family shed the burden of high credit card interest rates, fund an entrepreneur’s dream, or finance a wedding… all while earning a healthy return that may be above the general market rate. We provide you with the chance to invest in more than stocks and bonds. Peer-to-peer lending lets you invest in something (or someone) you can really care about.
If you have social causes close to your heart, you’re free to search for borrowers that match your personal criteria. The people you help might include firemen, teachers, or nurses, or you might choose to invest in targeted groups or small businesses.
The choice is yours. Participating in Prosper’s lending marketplace is a more rewarding way to invest.
How Does Prosper Work?
Investors create an account, set their parameters, and purchase Prosper Notes. Each Prosper Note corresponds to a listing which sets forth the relevant details about the loan, including loan amount, Note rate, yield percentage, and borrower information. Any payment from a Prosper Note is dependent on the payments Prosper receives on the corresponding loan.
The Notes that correspond to specific borrower listings are offered by prospectus. Investors should read the complete description of the Notes and risks associated with making an investment in the Notes as well as other information about the Prosper model in the prospectus.
Prosper Notes are risk bearing and speculative investments for suitable investors only. If a borrower fails to make payments on the corresponding borrower loan related to your Prosper Note, you will not receive payments on your Note. There is the potential that you will not receive any payments on a Prosper Note. You should review the prospectus before investing through Prosper. Not FDIC-insured. Notes may lose value. No Prosper or bank guarantee.
Prosper, Prosper.com, and the Prosper logo are registered trademarks or service marks of Prosper Funding LLC. Copyright © 2005-2013 Prosper Funding LLC. All rights reserved.
As of February 1, 2013, the Prosper marketplace was transferred by Prosper Marketplace, Inc. to Prosper Funding LLC, a wholly-owned subsidiary of Prosper Marketplace, Inc. From and after February 1, 2013 Prosper Funding LLC is the sole obligor of Notes offered and secured by loans made through the Prosper marketplace, including Notes originally issued by Prosper Marketplace, Inc. prior to such transfer. Prosper Marketplace, Inc. continues to provide services to Prosper Funding LLC relating to loan and Note servicing, and may interact with borrowers and investors in relation thereto as agent of Prosper Funding LLC. Except where otherwise noted, throughout this website "Prosper" refers to Prosper Funding LLC including acting directly or through its agents.
All personal loans are made by WebBank, a Utah-chartered Industrial Bank, Member FDIC. All Prosper personal loans are unsecured, fully amortized personal loans.
Notes offered by Prospectus. Notes investors receive are dependent for payment on personal loans to borrowers. Not FDIC-insured; Investments may lose value; No Prosper or bank guarantee. Prosper does not verify all information provided by borrowers in listings. Investors should review the prospectus before investing.
Seasoned Return calculations represent historical performance data for the Borrower Payment Dependent Notes ("Notes") issued and sold by Prosper since July 15, 2009. To be included in the calculations, Notes must be associated with a borrower loan originated more than 10 months ago; this calculation uses loans originated through March 31, 2013. Our research shows that Prosper Note returns historically have shown increased stability after they've reached ten months of age. For that reason, we provide "Seasoned Returns", defined as the Return for Notes aged 10 months or more.
To calculate the Return, all payments received on borrower loans, net of principal repayment, credit losses, and servicing costs for such loans, are aggregated and then divided by the average daily amount of aggregate outstanding principal. To annualize this cumulative return, it is divided by the dollar-weighted average age of the loans in days and then multiplied by 365.
All calculations were made as of March 31, 2013. Seasoned Return is not necessarily indicative of the future performance on any Notes.
Based on one year personal loans made to first time borrowers with an AA Prosper Rating. To qualify for an AA Prosper Rating, applicants must have excellent credit and meet other conditions. APRs by Prosper Rating range from 6.38% (AA) to 35.36% (HR) for first time borrowers. Repeat borrowers may qualify for discounted rates. Rate offered is based on Prosper Rating and other factors, and your actual rate may differ. Eligibility for a loan is not guaranteed and requires that a sufficient number of investors commit to fund your loan. Refer to Borrower Registration Agreement for all terms and conditions. All loans made by WebBank, a Utah-chartered Industrial Bank.