The fees charged to borrowers and lenders are very straightforward. All of the fees are listed on this page. There are no fees to use the site or post a loan listing. Fees only result from obtaining a loan as a borrower or having your loan serviced as a lender.
The closing fee is a percentage of the amount borrowed and varies by Prosper Rating:
|Prosper Rating||Closing Fee|
The closing fee is taken directly from the loan before the loan proceeds are transferred to your account. This means that if you're using your Prosper loan to purchase something specific (like a wedding dress), make sure you ask for enough to cover both the dress and the closing fee.
*** For example, if you have a Prosper Rating of B and take a loan for $5,000, then you will be charged a $247.50 closing fee. You will then receive $4,752.50 in cash deposited directly into your bank account. If you have a B rating and no previous loans and take a three year loan, your interest rate will be 17.68% (21.37% APR) and your scheduled monthly payment will be $179.96.
If a check or bank draft is returned; an automated withdrawal fails due to insufficient funds in your account; or your account is closed, changed, or made otherwise inaccessible without you having notified us, you’ll be charged a fee of $15. Only one failed payment fee will be charged per payment period, and this fee is retained by Prosper.
If your monthly payment is 15 days (or more) late, you'll be charged a late fee of either 5% of the unpaid installment amount, or $15 (whichever is greater). Late fees are passed on to lenders; Prosper does not retain late fees.
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. Prosper does not charge a servicing fee on prepayments.
The annual servicing fee is 1%. For example, on a $5,000 loan with a 10% interest rate, the servicing fee would be $80.70 over a full 3-year length. Because the servicing fee is based on the daily principal balance (which is an amortized value), it will change each month, and the fee will vary based on the interest rate and the length of the loan (if the borrower happens to pay it back in less than the allotted loan time).
In the event that one of your loan payments becomes more than one month late, Prosper will assign a professional collection agency 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.