Prosper works as a peer-to-peer lender that provides unsecured personal loans. The loans it offers are beneficial for borrowers with fair or good credit. For the qualification of the applicants, the company uses a risk rating system. It takes into consideration the hundred up data points that include credit history.
Overview of prosper loans
Prosper has marked its origination with more than $ 12 billion in terms of personal loans. It does so by matching the would-be investors to potential investors.
For that, it makes use of the online platform. The screening process used in the case of unsecured personal prosper loans are virtual. So, there are fewer loan underwriting costs. It means that prosper offers a better interest rate and quick turnaround times when compared to many brick and mortar counterparts.
When you take the loan from prospering, you actually do not get the money from prospering. Instead, the company accesses the broker for matching investors with the would-be borrowers.
Prosper offers a loan that ranges from $2,000 to $40000. Personal loans usually come with a fixed annual percentage rate between 6.95 percent and 35.99 percent. This applies to first-time borrowers. The quote received is based on multiple factors like credit history and other factors.
The amount of time for receiving the loan is dependent on how quickly they decide upon funding the loan. In case you get 70% or more of the loan fund in your account, then you can borrow the funded amount. Again, if you don’t get enough amounts, you can try relisting the loan request.
Fees and penalties
Prosper charges lower fees with the prosper loans. The most significant among all is its origination fee. The fee is varied depending on the terms of the agreement. They usually range from 2.41 % to 5 %.
Loan uses: The prosper loans serve every purpose. It also includes home improvement and debt consolidation. The company comes with a separate line of products for medical loans.
Time to fund: Prosper takes around 3 to 5 days for funding a loan on an average.
Payment options: Prosper now comes with the option of allowing borrowers to change due dates in particular situations. It is good to remember that you can’t extend the loan even during an emergency. The lender doesn’t directly pay that creditor if you are consolidating the debt.
Joint loan option: there’s an option of getting a joint loan. You can do so with someone having strong credit. The scheme leads to the improvement of chances of getting a loan. Besides, it also gives the opportunity of getting a lower rate on one.
The origination fee is around 2%.
Late fee is around $15 or 5% of the unpaid amount (whichever is greater).
Insufficient funds feel is approx $15.
- Good online experience lets the platform stand out. The entire loan process only requires the candidate to build the network virtually. It will let you experience a fast turnaround time.
- The platform is not accessible to many borrowers. The minimum required credit score is 640. So, you can get the availability of loans as a borrower with excellent credit.
- There is no prepayment penalty involved in the system. You can choose a term of 3 or 5 years for the repayment. It will not charge any fees for the payment of the loan at an early stage.
- The origination fee is a non-negotiable one.
Overall prosper now comes with plenty of advantages that mark it as one of the high-end platforms for lending loans.