The Prosper marketplace is a person-to-person online credit auction platform operated by Prosper Marketplace, Inc. ("Prosper"). Prosper handles the registration of borrowers, lenders and group leaders; the receipt, display and matching of listings and bids for loans; and the origination, sale, servicing and collection of principal and interest and other charges payable on loans.
All loans originated through the Prosper marketplace are made by WebBank, a Utah-chartered Industrial Bank. Prosper provides services to WebBank in connection with the origination of such loans and Prosper services loans made to Prosper borrowers on behalf of registered Prosper lenders who purchase such loans.
All loans are fixed rate, unsecured, 3-year, fully amortizing with simple interest. All loans are obligations of individual borrowers and not of corporations or businesses. Borrowers who obtain a loan to be used for business purposes, are personally obligated to repay the loan, regardless of the success or failure of the business for which the loan may be used.
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Loan amount: |
$1,000 - $25,000 |
| Maximum interest rate: |
36%* |
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Closing fee:
$25 minimum
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AA: 1% closing fee
A - B: 2% closing fee
C - HR: 3% closing fee
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Late fee:
15-day grace period
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The greater of 5.00% of the unpaid
installment amount, or $15** |
| Failed payment fee: |
$15 |
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* Texas residents are limited to 10% interest for personal use loans and 18% for business use loans. South Dakota residents cannot borrow at this time.
** Texas residents' late fee is 5% of the unpaid installment amount.
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Your role as a Prosper "Lender" is that of a loan purchaser. Although you are referred to on the Prosper website as a "Lender," you are not actually lending your money directly to Prosper borrowers, but are, instead, making loan purchase commitments and purchasing promissory notes from Prosper, representing loans made by WebBank, a Utah-chartered Industrial Bank to borrowers and subsequently assigned to Prosper.
A bid by a Lender is the Lender's commitment to purchase a promissory note in the principal amount of the Lender's bid, should the listing receive an amount of bids totaling the amount of the Borrower's requested loan.
Your rights and obligations as a Prosper Lender are set forth in the Lender Registration Agreement.
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Minimum bid: |
$50 |
| Maximum bid (per listing): |
$25,000 or the requested loan
amount, whichever is less |
| Maximum aggregate bid: |
$5,000,000 for individuals
$50,000,000 for institutions
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| Loan servicing fee: |
an annual rate of 1.0% of the outstanding principal balance
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Loans and returns on loans are not FDIC-insured and have no Prosper guarantee. Loans may lose value.
Promissory notes purchased by Prosper Lenders are non-transferable except upon default in accordance with the Lender Registration Agreement.
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IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT – To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents.
Although all loans are currently made by WebBank, Prosper holds the State consumer lending licenses and registrations shown below.
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Arizona
Consumer Loan License #CL0907835
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California
Finance Lender License #605-3227
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Colorado
Supervised Lender License #989214
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District of Columbia
Money Lender License #6014
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Florida
Consumer Finance License #CF-0600023
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Idaho
Regulated Lender License #RRL-5106
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Illinois
Consumer Installment Loan Act License #CI 3111
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Iowa
Non-Resident Regulated Loan License #NRR-2005-0250
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Kansas
Supervised Loan License #2005-5036
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Maine
Supervised Loan License #SLM8388 & 8389
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Maryland
Consumer Loan License #1150
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Massachusetts
Loan Servicer Registration
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Michigan
Regulatory Loan License #RL-0012605
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Missouri
Consumer Credit Loan Company Registration #367-06-4161
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Montana
Consumer Loan License & Supplemental Consumer Loan License #1008 & 1008-S
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North Dakota
Money Broker License #MB101655
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Ohio
Second Mortgage Lender License #SM.501506.000
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Oklahoma
Supervised Lender License #SL006429
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Oregon
Consumer Finance Act License
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Texas
Regulated Loan License #47698
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Utah
Consumer Credit Notification
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Vermont
Licensed Lender #5880
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Washington
Consumer Loan License #29045
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Wisconsin
Consumer Act Registration #51500
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Wyoming
Supervised Lender License #SL-2462
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