Personal Loan Rates and Fees
Personal Loan Interest Rates
Loan interest rates are set by Prosper and based on factors including:
- Prosper Rating, which is an indicator of expected loss rates
- Loan term
- Economic environment
- Competitive environment
Rates can change over time. The current interest rates are:
There are no fees for posting a borrower listing on Prosper. Fees are only charged if your loan is funded and money is transferred to you.
The origination fee is a percentage of the amount borrowed and varies by Prosper Rating:
|Prosper Rating||3 year||5 year|
|AA||1.00% - 2.00%||3.00%|
|C - HR||5.00%||5.00%|
The origination fee is taken from the loan immediately, before loan proceeds are transferred to your account. This means that if you're using your Prosper loan to purchase something specific (like kitchen remodeling), make sure you ask for enough to cover both the remodeling project and the closing fee.
$15 failed payment fee: A failed automated withdrawal, returned check, or bank draft will result in a fee of $15. Only one failed payment fee will be charged per payment period. This can be due to insufficient funds, a closed account, account changes that were not reported to Prosper, or for any other reason (other than an error by us). This fee is retained by Prosper.
Late payment fee: If a monthly payment is 15 days late, you'll be charged a late fee. Late fees are passed on to investors. Prosper does not retain late fees.
Every loan application is assigned a Prosper Rating –our proprietary system that allows us to maintain consistency in our evaluation. Prosper Ratings allow potential investors to easily consider a loan application's level of risk because the rating represents an estimated average annualized loss rate range to the investor.
|Prosper Rating||Estimated Avg. Annual Loss Rate**|
** The estimated loss rate is based on the historical performance of Prosper loans with similar characteristics. The estimated base loss rate is determined by two scores: (1) the borrower's credit score, obtained from an official credit reporting agency, and (2) the Prosper Score, figured in-house based on the Prosper population. These two scores determine the base loss rate for each listing. Adjustments can then be made to the base loss rate for the presence of a previous Prosper loan and for certain loan terms. Any adjustments are added to the base loss rate to get the final loss rate, which then determines the Prosper Rating.
The estimated loss rates are not a guarantee and actual performance may differ from expected performance.
The Notes that correspond to specific borrower listings are offered pursuant to the prospectus. Investors should read the complete description of the Notes and risks associated with making an investment in the Notes, as well as other information about Prosper, our agents and our platform.
How is the Verification Stage different from the Prosper Rating?
The Prosper Rating is our proprietary system that allows us to maintain consistency when evaluating each loan application. Prosper Ratings allow investors to consider a loan's level of risk because the rating represents an estimated average annualized loss rate range.
In contrast, Verification Stage is not a measure of potential credit risk. It is only an indication of the progress of a loan application based on verification of required information and documents. However, a loan in Verification Stage 3 indicates that the borrower’s information is farther along in Prosper’s verification process thereby increasing the likelihood that the loan will originate. Learn about Prosper's verification process.
APR starting at
* Based on one year personal loans made to first time borrowers with an AA Prosper Rating. To qualify for an AA Prosper Rating, applicants must have excellent credit and meet other conditions. APRs by Prosper Rating range from 6.73% (AA) to 35.36% (HR) for first time borrowers. Repeat borrowers may qualify for discounted rates. Rate offered is based on Prosper Rating and other factors, and your actual rate may differ. Eligibility for a loan is not guaranteed and requires that a sufficient number of investors commit to fund your loan. Refer to Borrower Registration Agreement for all terms and conditions. All loans made by WebBank, a Utah-chartered Industrial Bank.
*** For example, if you have a Prosper Rating of B and take a loan for $5000.00, then you will be charged a $250.00 closing fee. You will then receive $4750.00 in cash deposited directly into your bank account. If you have a B rating and no previous loans and take a 3 year loan, your interest rate will be 12.34% (15.95% APR) and your scheduled monthly payment will be $166.88.