Prosper Reviews

Based on 1 Reviews

Category: Finance

Prosper cites itself as being america's very first peer to peer lending marketplace. There are currently more than 2 million members with over one billion in loans having been agreed. The idea behind Prosper is that people can invest in each other. This is a social way to fund loans for a variety of purposes. One of the unique things about Prosper is that it gives each user a rating which helps to determine the interest rate that person gets. Allocating this rating allows investors to consider how much risk that particular loan presents in terms of potential loss. Those with a aa rating get the most favourable rates while those rated hr are treated with caution by investors due to the elevated level of risk.

How to Use (Step by Step)

  1. Borrowers Request A Loan
  2. Borrowers choose their desires loan amount, list the purpose of the loan and submit their loan listing to Prosper.

  3. Investors Review The Listings
  4. Investors will then review current loan listings via Prosper and choose which to invest money in based on their own preferences and criteria.

  5. Borrowers Repay The Loan
  6. Once the entire process has been completed, borrowers make monthly repayments and the investors receive their share of the repayment paid into their Prosper accounts.


  • High Yields & Short Durations
  • Prosper offers excellent returns on 3 and 5 year loan terms. It also offers a variety of portfolio benefits which give substantial return on investments without tying up your cash in the long term like some other investment opportunities would.

  • Consistent Profitability
  • Consumer lending is by no means a new concept and it has generated plenty of profit over the years. However, Prosper has opened up this opportunity to other investors outside of the usual handful of financial institutions.

  • Monthly Cash Flow
  • Borrowers make monthly repayments plus interest and investors receive their cut of these repayments into their Prosper account thus creating a regular passive income.

  • Investment Diversification
  • Investing in consumer lending is a great way for investors to diversify their investment portfolios.

  • Prosper Ira
  • Users can enjoy tax advantages by opening up a Prosper ira ( individual retirement account ).

  • Social Lending
  • By participating in social lending you are essentially investing in people. This gives you the opportunity to help families to finance their dreams all while making a little profit for yourself in the process.


  • Be Aware Of The Fees
  • There are no fees involved when posting a borrower listing on Prosper. However, fees will be charged when the loan is funded and you receive the funds transfer. A closing fee is taken before the loan is transferred to the borrower. The amount of this closing fee depends on the borrower's Prosper rating.

  • Interest Rates Vary
  • The interest rates for loans funded via Prosper are based on a variety of different factors. These factors include the individual's Prosper rating, the term of the loan and both the economic and competitive environments. Actual rates change all the time and can range from between 7% and 35% depending on the borrower or loan type.


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