Hi, what are you looking for?

Company News

Prosper Announces Rate Increase for Borrowers

Today, Prosper implemented an increase to the rates offered to borrowers through our platform in order to increase returns for its investors. The rate increase demonstrates our commitment to operating a marketplace that balances the economic incentives for both our borrower and investor communities.

This is the second rate increase that we have implemented this year, and follows additional rate increases from August 2015. These changes are a direct result of forward looking credit market and interest rate expectations. We believe that these proactive changes are necessary for us to continue providing a compelling fixed-income product relative to the many alternatives available to our investor community. 

Today’s rate increase is in anticipation of action by the Fed to raise rates next month, and the expectation of this action is already largely priced into forward curves and swaps. Additionally, we believe that this move is appropriate and makes the risk-reward tradeoff of investing in newly originated loans at least as attractive as purchasing ABS products backed by loans through Prosper in the secondary market. 

Pricing Change Impact (March 2016 Loan Simulation):

The table below summarizes the impact of the rate increase as simulated on the March booked loan portfolio. While the exact portfolio composition going forward will be a result of future marketing mix and borrower reaction to the increased prices, we believe this is a fair representation of the potential impact of the changes.  As one can see in the table below, the increase in rates is focused on the higher risk grades.



As with past rate increases, this recent move underscores our fundamental desire to maintain a balanced, sustainable marketplace that is equally appealing to borrowers and investors. We believe the value of newly originated loans will be competitive with traded securities backed by loans through Prosper, and takes into consideration the steeper forward curves on the risk-free rate that will be driven by the anticipated actions of the Fed next month.

Join our mailing list

Blog Opt-In (General)


Investor Center

Today we are sharing performance data from the Prosper Portfolio for December 2021. Highlights from the report include: Performance Update In December, approximately 60%...

Prosper Blog

We’re excited to announce the launch of the Prosper® Card!  Now you can take control of your finances with access to affordable rates and...

Graphic showing dropping interest rates and mortgage rates Graphic showing dropping interest rates and mortgage rates

Financial Literacy

Best Ways to Use Low Interest Rates  Now is a great time to borrow money.  To continue to aid in the economic recovery from...

Person learning about financial management Person learning about financial management

Best Practices

Most people can’t help but let their emotions affect their financial management decisions, even if it’s subconscious. We learn many of our attitudes about...

Company News

We’re excited to announce the Prosper: Personal Loans App to improve borrower experience! Now you can explore new loan options or manage your existing...

Performance Updates

Today we are sharing performance data from the Prosper Portfolio for November 2021. Highlights from the report include: Performance Update • In November, approximately...

You May Also Like

Credit Management

Unemployed and looking for ways to borrow money? We’ll reveal what options you have when it comes to accessing emergency loans with no job.

Best Practices

Even before COVID, expensive healthcare costs had many Americans wondering what happens if you don’t pay medical bills. If you’re struggling with medical bill...

Finance for Homeowners

Taking out a HELOC to pay off your mortgage is a common practice among many homeowners today. Read more to find out the pros...

Financial Literacy

With the right interest rate and terms, a personal loan from a trusted lender can provide an avenue for getting out of debt, funding...