Prosper is an online lending marketplace operated by Prosper Funding LLC (“Prosper”). Prosper and its agents handle the registration of borrower members and investors; the receipt, display and matching of listings and investments on listings; the issuance and sale of Borrower Payment Dependent Notes (“Notes”) to investors; and the servicing and collection of principal and interest and other charges payable on loans. Our investors may offer their Notes for sale to other investors through the Folio Investing Note Trader platform operated and maintained by FOLIOfn Investments, Inc., a registered broker-dealer.
- Our borrower members can post listings on our marketplace to request and obtain loans, which we call “borrower loans.”
Our investors can invest in listings and purchase Notes from Prosper, the payments of which are dependent on Prosper’s receipt of payments on the corresponding borrower loans described in the listing.
All loans originated through the platform are made by WebBank, a Utah-chartered Industrial Bank. Our affiliate, Prosper Marketplace, Inc., provides services to WebBank in connection with the origination of such loans and services all loans made to Prosper borrowers for the benefit of our investors who purchase Notes dependent for payment on such loans.
All borrower loans are fixed rate, unsecured, fully amortizing loans with simple interest. All loans are obligations of individual borrowers and not of corporations or businesses. Borrowers who obtain a loan to be used for business purposes, are personally obligated to repay the loan, regardless of the success or failure of the business for which the loan may be used. The following limits and fees apply: