Getting a personal loan or home loan with a low APR and higher loan term is hard to find. But today we have a platform called prosper for you where you can have as low as 6.99% fixed APR for your loan. And you can get a loan amount from $2,000 to $50,000.
This post is all about prosper loan reviews where we have covered what is prosper loan is, how it works, its key features and benefits, and its pros, and cons. So, stay tuned with us to know more about prosper reviews.
Prosper loans at a glance
Prosper is the first peer-to-peer lending platform in the US and it was established in 2005. Since then, Prosper has helped more than 1,400,000 borrowers access more than $23 billion in loans.
People can invest in one another financially and socially through Prosper.
Online applications are accepted for loans between $2,000 and $50,000 with fixed rates and fixed terms. Loan investments offer both individuals and institutions the chance to make a profit.
Whereas on behalf of the matched investors and borrowers, prosper manages all loan servicing.
Leading investors such as Sequoia Capital, Francisco Partners, Institutional Venture Partners, and Credit Suisse NEXT Fund support Prosper Marketplace.
Prosper is a BBB-accredited business with an A+ rating and there are more than 10,000 prosper reviews with an excellent ratings. Webbank makes all personal loans, while Prosper Lending Partners underwrites and issues HELOCs.
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How does prosper Loan work?
Via the peer-to-peer lending website Prosper, borrowers can obtain loans from private lenders. This is how it goes:
Application submission: On the Prosper website, borrowers submit loan applications by detailing the loan amount and purpose as well as their credit report, income, and other personal and financial details.
Based on the borrower’s credit score and other indicators, Prosper assesses their creditworthiness and gives them a rating. The interest rate and other costs that the borrower will pay on their loan are determined by this rating.
Get a loan offer: Based on the borrower’s rating, loan size, and other criteria, investors can browse and choose loans to invest in. Investors can contribute as little as $25 to each loan, and the money is combined with those of other investors to finance the loan.
After the loan is funded in full, the borrower receives the loan amount less Prosper’s origination charge, which varies depending on the borrower’s credit score from 1% to 5%.
Repayment: Monthly payments are made by the borrower to the investors who provided the loan, who then get the money. Additionally, to cover administrative costs, Prosper levies a maintenance fee of 1% of the outstanding loan balance.
Prosper will make an effort to collect a late payment from a borrower on the investors’ behalf. Prosper will file a lawsuit to recoup the unpaid sum in the event of default.
In general, Prosper provides a way for both investors and borrowers to gain from funding loans at reasonable rates.
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What You Need to Know Before You Apply
There are a few things you should be aware of prior to applying for a Prosper loan in order to make an educated choice:
Credit score: Prosper requires borrowers to have a credit score of 640 or above in order to be approved for a loan. Yet, better loan terms, like a reduced interest rate, will typically result from having a higher credit score.
Income: Borrowers must earn at least $10,000 annually to qualify for Prosper. A larger salary, however, may increase your chance of loan approval and result in more favorable loan terms.
Debt-to-income ratio: When evaluating your loan application, Prosper takes into account your debt-to-income ratio (DTI). Borrowers with a DTI of 50% or less are often preferred by Prosper.
Loan purpose: Prosper provides personal loans for a range of needs, such as debt relief, home renovations, and medical costs. Prosper does not, however, provide loans for commercial endeavors.
Loan terms: Prosper offers three- or five-year loan periods. Your credit standing, income, and other variables will determine the interest rate and the loan amount you are eligible for.
Fees: The origination fee charged by Prosper on its loans can range from 1% to 5%. Insufficient cash and late payments both carry costs.
Pre-approval: Prosper provides a pre-approval process so you may check out the loan terms you might be eligible for without having your credit score affected.
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How to Apply for Prosper Loan
How to apply for a loan on Prosper is as follows:
Go to the prosper website: First, you need to go to the Prosper website. It will open up a new window, scroll down and you will see this.
Here, click the “Check Your Rate” button.
Enter the loan amount and purpose: It will ask you to enter the amount from $2000 to $50,000 and the reason for your loan.
Provide information: Then they will ask for your personal information, which includes your name, address, birth date, email, residence address, zip code, the primary source of income, annual income, rent, or mortgage payment, phone number, and then select a password.
Then click on the check my rate button, then it will ask you to enter your SSN. Then you will get your loan offers.
Describe your financial situation: Provide details about your employment, yearly salary, and rent payment. You can also be asked to supply more specific financial data, including the particulars of your bank account.
Examine loan possibilities: Prosper will show you the loan alternatives you could be eligible for when you submit your information. To find the loan that best meets your needs, you can compare loan terms, interest rates, and monthly payments.
Select any loan offer: After carefully examining your loan alternatives, select the one that best meets your requirements and press “Continues to Application.”
Fill out the form completely: Fill out the loan application and submit any additional data that Prosper requests. Also, you could be asked to submit supporting documents for your application, including pay stubs or bank records.
Await approval: Prosper will review your application once you submit it and decide whether or not to approve your loan. You’ll get the loan money soon as it’s accepted.
In general, the process of applying for a Prosper loan is rather simple. Before applying, it’s crucial to confirm that you match the eligibility conditions and are aware of the loan terms and fees.
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What types of loans do prosper provide?
Prosper offers unsecured personal loans and home equity loans.
Personal loan
You can acquire a personal loan from Prosper for $2,000 to $50,000, and you’ll get the money as soon as the next business day. You can pay off your loan earlier because there are no prepayment penalties.
More than a million consumers have used Prosper since 2005 to get low-interest online personal loans.
Personal loan rates as low as 6.99% fixed APR are available through Prosper. Also, you can utilize the loan amount to pay off debt, cut your monthly payments, complete home improvements, settle medical bills, purchase a car, or go on a trip.
And prosper has a fast, uncomplicated application process. You will be charged 4 different types of costs by Prosper, including origination fees (1–5%), check payment fees, late fees, and insufficient fund fees. And to apply, visit the prosper personal loan page.
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Home equity
Prosper offers a Home equity loan (HELoan) and Home equity line of credit (HELOC). Let’s see one by one-
Home equity loan (HELoan)
Your home serves as collateral for a HELoan, which has a fixed rate and set monthly installments.
With an APR as low as 9.547%, Prosper offers home equity loans with loan terms ranging from 5 to 30 years.
With the help of Prosper Home Equity, you can borrow up to $249k using up to 90% of your home’s value.
Also, you can use the funds from a home equity loan for a variety of purposes, including debt consolidation, family costs, large purchases, and everything in between.
The maximum borrowing amount is determined by a number of variables, including debt-to-income (DTI) ratio, combined loan-to-value (CLTV), ownership type, and credit score.
Furthermore, there is no prepayment penalty, allowing you to repay your loan early.
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Home equity line of credit (HELOC)
Your home also serves as security for a flexible rate and amount of money HELOC.
Home equity lines of credit with a maximum 10-year loan term are offered by Prosper.
With a Prosper HELOC, you can access up to $500,000 using up to 95% of the equity in your home. Nevertheless, loans over $250,000 need title insurance and an in-home appraisal.
Also, you can use HELOC funds for almost anything, from debt reduction to family costs to home improvements and large purchases.
The maximum borrowing amount is determined by a number of variables, including debt-to-income (DTI) ratio, combined loan-to-value (CLTV), ownership type, and credit score.
Also, there is no prepayment penalty, allowing you to repay your loan early.
Comparison of the prosper home equity options
| Features | Home equity loan (HELoan) | Home equity line of credit (HELOC) |
|---|---|---|
| Interest rate | Fixed APR | Variable APR |
| Monthly payments | Steady | Fixed |
| Prepayment penalty | No | No |
| Get lump sum | Yes | No |
| Keep your existing mortgage | Yes | Yes |
| Spend the money as you like | Yes | Yes |
| Withdraw funds when you need | No | Yes |
Prosper loan key features and benefits for borrowers
For borrowers, some important characteristics and advantages of Prosper loans include:
Simple and Convenient Online Application Process: Prosper provides a simple and convenient online application process. Without affecting your credit score, borrowers can check their loan eligibility and obtain tailored loan offers.
Competitive Interest Rates: When compared to traditional banks and credit card companies, Prosper offers competitive interest rates, which can save borrowers money on interest payments over the course of the loan.
Fixed and Variable Monthly Payments: Borrowers can more easily create a budget and plan their finances with Prosper loans because the interest rates and monthly payments are fixed.
No Prepayment Penalties: You can pay off your loan earlier without any prepayment penalty.
Mobile app: Prosper has android and IOS apps for loans, investments, and credit cards. So, you can manage your account online via their app.
Various Loan Options: Prosper provides a range of loan options, including personal loans, and home equity loans to fit the needs of various borrowers.
High Borrower Satisfaction: Several borrowers have expressed pleasure with Prosper’s loan application process, customer service, and loan terms, contributing to the company’s high borrower satisfaction rating.
It’s crucial to keep in mind that loan conditions and prerequisites could change depending on a borrower’s creditworthiness and other elements.
Before accepting an offer, borrowers should carefully understand the terms and conditions of any loan. incurring any further costs.
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How to contact Prosper
There are a few different ways to contact Prosper:
Phone: You can contact Prosper’s customer service team by phone at 866-615-6319. The customer service team is available Monday through Friday from 9:00 am to 8:00 pm Eastern time and on Saturdays from 9:00 am to 5:30 pm Eastern time.
Email: You can send an email to Prosper’s customer service team at support@prosper.com. They typically respond within 24-48 hours.
Online Help Center: Prosper has an online Help Center that provides answers to frequently asked questions and offers resources for borrowers and investors.
Live Chat: You can also contact Prosper’s customer service team via live chat on their website. The live chat feature is available during the same hours as phone support.
Mail: You can send mail to Prosper’s headquarters at the following address-
221 Main Street, Suite 300, San Francisco, CA 94105
It’s important to note that the specific contact methods and availability may vary based on your location and the nature of your inquiry.
Where Prosper stands out?
Prosper is distinctive in a number of ways.
Peer-to-Peer Lending Model: Prosper is a market leader in peer-to-peer lending, which enables borrowers to get loans from private investors directly instead of going through a traditional bank.
In comparison to conventional banks, this model may be able to give borrowers more flexible loan terms and lower interest rates.
Comparable to conventional banks and credit card firms, Prosper offers competitive interest rates. Good credit borrowers may qualify for rates as low as 6.95% APR.
Prosper offers a variety of lending alternatives, including personal loans, and home loans. Borrowers can choose a loan that best suits their needs thanks to the variety of lending options available.
Fast and simple application procedure: Borrowers can obtain customized loan offers from Prosper in just a few minutes after completing the company’s quick and simple online application process. Borrowers will find the process convenient because it may be finished entirely online.
No Prepayment Penalties: Because Prosper loans do not have prepayment penalties, borrowers may pay off their loans early without being charged an additional cost.
Overall, Prosper stands out as a loan choice because of its peer-to-peer lending strategy, competitive interest rates, variety of loan possibilities, and borrower-friendly policies.
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Prosper Loan Reviews and Testimonials
There are very favorable Prosper loans reviews, many borrowers complimented their aggressive interest rates, quick and simple application procedure, and variety of loan alternatives.
However, there are also some negative prosper personal loan reviews. Some borrowers complain about the origination and late payment costs.
There are more than 10,000 prosper loan reviews on Trustpilot and received an excellent rating of 4.7 out of 5. Here, in the image below you can see all the proper loan reviews on Trustpilot.
90% of people have given a 4 or 5-star rating to prosper.
Postive reviews
- competitive loan conditions and interest rates
- The loan application process is quick and simple
- outstanding client service
- ability to repay loans without penalty early
- clear loan conditions and costs
Negative reviews
- Origination fees that exceeded expectations
- Despite having good credit scores, loan applications are rejected
- Several clients encountered difficulties in getting loan funds.
- The issue was not resolved by customer service, and late payment costs were assessed.
Prosper also has an A+ rating from Better Business Bureau.
The Pros and Cons of Using Prosper Loan
There are great prosper reviews out there but prosper does have some pros and cons like other loan products.
Pros
- Comparing Prosper’s interest rates to those of conventional banks and credit card firms, they are competitive.
- The fast and simple application process
- Many loan alternatives are available through Prosper, including personal, and home equity loans.
- Prepayment penalties are absent from Prosper loans, allowing borrowers to return their debts early without paying additional fees.
- High borrower satisfaction
- A+ rating from BBB
- Excellent prosper reviews with 4.7 stars on Trustpilot
- Has its own android and IOS app to manage your account online
Cons
- Prosper levies origination fees on its loans, which can range from 1% to 5% of the loan amount.
- Prosper requires applicants to have a credit score of 640 or above in order to be eligible for a loan.
- Loan limits: The $50,000 maximum loan amount on Prosper might not be enough for some borrowers.
- Late payment costs are assessed by Prosper and can be as high as $15 or 5% of the outstanding balance, whichever is higher.
- Prosper loans are not available in all states, which may restrict their accessibility for some borrowers.
Prosper provides a variety of loan options, quick and simple application procedures, and competitive interest rates overall. The origination fees, credit score criteria, loan restrictions, as well as the potential for late payment fees, should all be understood by borrowers.
Conclusion: Prosper loan reviews
Prosper is peer to a peer landing platform, in simple words here many lenders invest their money in a person who needs finical support. Prosper handles all the operations.
There are personal and home equity loans are available with low APR rates. Apart from that on third-party rating websites like Trustpilot, there are great prosper loan reviews with an excellent rating of 4.7 stars.
Is prosper a good lender?
Yes, prosper isn’t a lender itself. Prosper handles all the operations while many platforms lend money. But there is no doubt, Prosper is good at loans. Even, There are more than 10,000 prosper loan reviews with an excellent rating. So, you can trust prosper.
Are prosper loans legit?
100%, Prosper is Better Business BUerao accredited company with an A+ rating. Also, there are more than 10,000 prosper reviews on Trustpilot with an excellent ratings.