Prosper 2025 Personal Loan Review

Prosper is an online peer-to-peer lending platform that provides personal loans to borrowers with credit scores from 560 and above.

To determine which applicants qualify, Prosper uses a proprietary model that evaluates information like bank account transactions and alternative financial history. It also considers more traditional measures of creditworthiness. Then Prosper connects a borrower’s application with investors who can decide to fund the loan.

Prosper offers a wide range of loan amounts, making it a strong option for major and minor expenses.

» MORE: Compare top personal loan lenders and rates

Personal loans through Prosper at a glance

• Disclosure from Prosper

  Terms presented, including APR and monthly payment amount, are estimated and created based on information entered by you and through analysis of historical data on loans through Prosper. Your eligibility for a loan and actual terms depend on the information you provide in your application, and other variables including, but not limited to, your credit score, Prosper Rating, loan amount, loan term, employment and income details, credit usage and history. Eligibility for personal loans up to $50,000 depends on a number of factors, including (but not limited to) your financial history, credit score, monthly income, and monthly expenses. Eligibility for personal loans is not guaranteed, and requires sufficient investor commitments to fund. Your monthly payment amount may be different in the final month of your loan. Personal loans through Prosper have an annual percentage rate (“APR”) of 8.99% to 35.99%, terms between two and five years, and an origination fee from 1% to 9.99%. For example, a three-year $10,000 personal loan with an interest rate of 16.66% and a 8.99% origination fee results in a 23.53% APR. You would receive $9,101.00 and make 36 scheduled monthly payments of $354.84. A five-year $10,000 personal loan with an interest rate of 18.73% and a 8.99% origination fee results in a 23.26% APR. You would receive $9,101.00 and make 60 scheduled monthly payments of $257.92. The average APR for loans with a 3-year term funded between January 1, 2025, and June 30, 2025, was 23.53%. Whether you are eligible for a specific APR or loan term will depend on a number of factors, including (but not limited to) your current credit rating and information you provide in your application. The lowest rates are for the most creditworthy applicants. Your actual rate may differ. You may receive your funds one business day following your acceptance of the loan offer, completion of all necessary verification steps and final approval. One business day funding is also dependent on your bank’s transaction processing speed. All personal loans made by WebBank.

Where Prosper stands out

Accepts borrowers from across the credit spectrum: Prosper says it offers loans to borrowers whose credit scores range from bad to excellent. The company uses AI in its underwriting process to analyze numerous data points, including non-traditional factors such as bank transactions and rental payment history. Tapping that kind of information can lead Prosper to extend loans to borrowers other lenders may overlook.

Pre-qualifying shows a wide range of information about the potential loan: Prosper lets potential borrowers pre-qualify with a soft credit check. Potential borrowers can view their potential loan amount, rate, repayment term, monthly payment and total interest costs, plus compare multiple offers.

Joint loan option: Prosper's platform allows two borrowers to apply together as joint applicants. The company says requirements for borrowing may be less strict for co-borrowers than single applicants.

Fast funding: Prosper says next-day funding may be available for approved borrowers, and most receive loan funds within three days of loan approval. The platform states that investors have up to 14 days to fund an approved loan. The loan request will be denied if it isn’t at least 70% funded by then.

Well-rated mobile app: Borrowers can apply for a loan, make payments and check their credit score on the Prosper mobile app. The app is a convenient benefit for borrowers who manage their finances on their phone.

Where Prosper falls short

No rate discount: Prosper doesn’t offer any discounts off a borrower’s annual percentage rate. Other lenders have rate discounts for setting up autopay or authorizing direct pay to creditors on a debt consolidation loan.

Charges origination fees plus other fees: Personal loans through Prosper have origination fees ranging from 1% to 9.99% of the loan amount. The lending platform also charges $15 insufficient funds fees and late fees of $15 or 5% of the monthly payment, whichever is greater. If you choose to make loan payments by mailing in a check, Prosper charges a $5 fee, which is rare among personal loan lenders.

No direct payment to creditors with debt consolidation loans: Prosper does not send your loan proceeds directly to other creditors. That benefit, offered by many other lenders, streamlines the debt payoff process.

How to use personal loans through Prosper

Do you qualify for a personal loan through Prosper?

Prosper considers loan applications from borrowers across the credit spectrum. The company says it also factors in non-traditional data, such as bank transactions and rental payment history, to determine loan approval.

Prosper’s borrowing requirements

• Minimum credit score: 560.

• Maximum debt-to-income ratio: 50% not including mortgage payments.

• Must have a Social Security number, U.S. bank account and proof of U.S. residency (loans not available to residents of Iowa or West Virginia).

Prosper’s average borrower snapshot

• Average loan amount: $16,008.

• Average APR: 23.1%.

• Most common loan term: 5 years.

• Most common loan purposes: Debt consolidation, home improvement, household expenses, health care expenses, vacations and big purchases.

• Average borrower’s credit score: 708.

• Average annual income: $139,000.

• Average borrower’s debt-to-income ratio: 40.1%.

» MORE: How to get a personal loan

How we rate Prosper

NerdWallet writers and editors rate lenders against a rubric that changes each year based on how personal loan products evolve. Here’s how we scored Prosper this year: