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Get started with one of our pre-set target investment mixes, or create your own custom mix. The interest earned is automatically reinvested in new loans, ensuring your money is working for you.
Select which personal loans you'd like to invest in. You'll have all the financial details you need to make savvy decisions. You can check out listings here.
Prosper is an online peer-to-peer lending marketplace, where creditworthy borrowers can request a loan and investors can invest in “notes” (or portions) of each loan.
After a borrower accepts their loan offer, we may verify their application information. Upon borrower acceptance, investors have up to 14 days to commit funds to the loan through their Prosper account. Once a borrower passes any additional verification requirements and one or more investor(s) commit enough funds to the loan it's ready for origination.
Loans through Prosper are amortized, meaning borrowers make fixed monthly payments throughout the duration of their 3- or 5-year term. Each payment is comprised of principal, interest, and any applicable fees. Investors receive a portion of those payments that are proportional to their pro rata share of the loan. These funds are deposited directly into investors' Prosper Accounts.
With any debt, there's always the risk that a borrower can default on their loan, which could result in a loss for the investor(s) who invested in the loan. Loans are unsecured obligations, meaning they are not secured by any collateral of the borrower. To assess the risk of each loan before committing funds, investors should review the loan request details and the Prospectus.
Retail investors must be United States permanent residents or citizens who are 18 years of age or older, with a valid Social Security number (or other Taxpayer Identification Number, if investing through a trust, estate, or corporate entity) and checking or savings account. Retail investors must reside in a state that is open to Prosper investors and may also be required to meet suitability requirements established by their state of residence. See more state requirements here.
While we can't make any specific recommendations; we have found that investors generate a more stable return when they diversify their investment through many different Notes, with each Note corresponding to the borrower loan of a different borrower. Prosper's Notes are offered by Prospectus which is an official document that describes all the key information for the investments we offer. You can find our Prospectus on our website at the bottom of any page at www.prosper.com.
For individual general investment accounts, the minimum amount you can invest is $25.
For IRAs managed by our designated custodians, Millennium Trust Company and Alto IRA, the minimum investment amount required to qualify for custodian fee reimbursement is $5,000 in year 1 and $10,000 in all subsequent years. Please note that these minimums refer to the amount invested in Prosper Notes -- cash balances will not be counted.
The cash balance of your Prosper investment account is FDIC insured by Wells Fargo Bank, N.A.
The FBO account that we maintain at Wells Fargo Bank, N.A. for the benefit of investors is FDIC-insured on a “pass through” basis to individual investors, subject to applicable limits. This means that each individual investor’s balance is protected by FDIC insurance, up to the aggregate amounts established by the FDIC. Other funds the investor has on deposit with Wells Fargo may count against the FDIC insurance limits.
Please be aware that any funds lost due to borrower default or poor Note performance are not FDIC insured.
Personal Loans offered through Prosper are 3- and 5-year terms - meaning borrowers make fixed monthly payments throughout the duration of their loan's term. Each payment is comprised of principal, interest, and any applicable fees. Investors receive a portion of those payments that are proportional to their pro rata share of the loan. These funds are deposited directly into investors' Prosper Accounts as uninvested available cash.
Any uninvested available cash in your account is FDIC-insured and can be withdrawn whenever you wish, but your investment (principal and interest) is repaid to you over the course of the underlying loan term.
If the borrower does not satisfy their monthly payment within 15 days of the due date, the borrower will be charged a late fee. Late fees are 5% of the payment amount or $15, whichever is greater (unless state restrictions apply).
We divide and distribute the late fees proportionately among the investors in the corresponding Notes, subject to deductions for collection fees and servicing fees.
If a loan is more than one day past due, we may collect on it directly or we may refer it to a third-party servicer or collection agency. Once a loan reaches 121 days past due, it is charged off. Historically, recovery rates on loans once they have entered into collections range from 7-12%.
Investors cannot attempt their own collections efforts or attempt to contact borrowers directly.