Fees and Charges

1-3% closing fee

If you are a borrower and your loan is funded, you will be charged a percentage of the amount borrowed or $25, whichever is greater, depending on your credit grade:

• AA: 1% closing fee
• A - B: 2% closing fee
• C - HR: 3% closing fee

For example, if you are a borrower with a B credit grade and you take a loan for $5,000 to help pay for your wedding, you will be charged $100. The 2% is taken from your loan immediately, so in this example your loan is for $5,000 and you'd receive $4,900 in cash deposited into your bank account.

This means that if you're using Prosper to purchase something specific (like a wedding dress), make sure you ask for enough to cover the dress and the closing fee.

$15 failed payment fee

If a loan payment is unable to be made 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 for each check or bank draft returned or failed automated withdrawal. This fee is retained by Prosper.

Late payment fee

If your 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.

1% Electronic funds transfer discount

Borrowers who elect to pay their loans through electronic funds transfer will receive a discount of 1.00% from the interest rate on loans to borrowers who do not agree to electronic payments. Borrowers who choose bank drafts will not receive the 1.00% discount.

1% annual loan servicing fee

The annual servicing fee 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 example, on a $5,000 A credit grade 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).

Collection agency recovery fee

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.