Prosper will be updating rates offered to people who borrow through the Prosper platform as of March 2nd. This update will impact AA, A and B rated loans, with an increase in pricing of approximately 60bps, 50bps, and 20bps, respectively. Additionally, HR rated loan rates will decrease by 10bps, which is driven by the desire to remain below 35.9% APR.
Over the past year Prosper has made a handful of conservative pricing adjustments to maintain a balanced, sustainable marketplace that benefits both our borrowers and investors. These pricing changes are a direct result of the forward-looking credit market, interest rate expectations, the US credit environment and the competitive environment in US consumer unsecured lending.
The below breakdown of the estimated impact and a chart that highlights the new base loss grid.