Prosper Personal Loans: Rates, Fees and Terms for 2026

Prosper is a peer-to-peer lending marketplace offering fixed-rate personal loans from $2,000 to $50,000 to borrowers with a credit score of 600 or higher, though solo applicants typically need closer to 640 to qualify. The annual percentage rate (APR) ranges from 8.99% to 35.99%, and an origination fee of 1% to 9.99% comes out of your loan proceeds before the money reaches your bank account.

If your credit is strong, it's worth comparing offers, since some lenders charge lower rates or skip the origination fee entirely.

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Key Takeaways

• Prosper fits fair-to-good credit. The stated minimum is a 600 credit score, though solo applicants generally need at least 640 to qualify without a co-borrower, according to Prosper's own disclosures.

• Rates are fixed but can run high. APRs range from 8.99% to 35.99%, and Prosper's own APR disclosure example shows a representative three-year, $10,000 loan at a 24.19% APR.

• Fees come out of your check. An origination fee of 1% to 9.99% is deducted before funding, so a $2,000 loan at the top fee nets about $1,800.

• Co-borrowers set it apart. Prosper is among the relatively few lenders that allow joint applications, which can improve approval odds and help lower your rate.

• Funding is fast for most, slower for some. Money can arrive as soon as one business day after your loan is finalized, but the investor-funded model can take up to 14 business days.

• A 2025 data breach is part of the picture. Prosper disclosed a breach affecting personal information accessed between June and August 2025 and is offering affected users two years of complimentary credit monitoring through Experian, so weigh account security before you apply.

Summary generated by AI, verified by MoneyLion editors

What Is Prosper and How Does It Work?

Prosper was founded in 2005 by tech entrepreneurs Chris Larsen and John Witchel to provide financing to people who might otherwise be denied. Headquartered in San Francisco, Prosper is a peer-to-peer marketplace that connects borrowers with investors willing to fund personal loans, an arrangement that helps it serve people with less-than-perfect credit or a spotty financial history.

Like most peer-to-peer marketplace loans, Prosper loans are unsecured, meaning you don't have to pledge a house, car or other asset as collateral to qualify.

Prosper lists your loan request on its marketplace along with a measure of your credit score called a Prosper Rating. Investors can then commit to fund all or part of your request, and your application is successful once it draws enough funding to cover the amount you asked to borrow. Prosper doesn't originate the loans itself. That job belongs to WebBank, a Utah-chartered, Federal Deposit Insurance Corp. (FDIC)-insured industrial bank. Prosper handles servicing after the loan closes.

At a Glance: Prosper Personal Loans

Prosper Pros and Cons

Prosper loans have some unique benefits, but weigh the drawbacks too.

What Are Prosper's Rates, Loan Amounts and Terms?

Let's dig a little deeper into the need-to-know details:

Interest Rates

Prosper offers fixed APRs from 8.99% to 35.99%. Your rate depends on your credit profile and your Prosper Rating, a grade assigned during underwriting that ranges from its most creditworthy tier down to its highest-risk tier, so it's worth checking your credit report before you apply.

Prosper's own APR disclosure illustrates the cost with this representative example: a three-year, $10,000 loan with a 17.29% interest rate and an 8.99% origination fee works out to a 24.19% APR, and the borrower would receive $9,101 and make 36 payments of $357.97. That's higher than what several top lenders charge, though not all of them work with borrowers who have a fair credit score. A fair credit score runs from 580 to 669 on the Fair Isaac Corp. (FICO) scale.

Loan Amounts

Prosper offers personal loans between $2,000 and $50,000, with the largest loans reserved for borrowers with the strongest credit, financial history and ability to repay. If you need to borrow more, a lender like SoFi® offers higher maximums. If you need less, Happen Bank (formerly LendingClub) or Upstart offer lower minimums.

Prosper places few restrictions on how you can use your loan. Funds can go toward home improvements, debt consolidation, medical bills and even small business costs. You generally can't use a Prosper loan for post-secondary education expenses or to purchase securities.

Repayment Terms

Prosper offers repayment terms of two, three, four, five or six years. That range adds flexibility, though it can feel restrictive if you want a longer term to lower your monthly payment. Some lenders, including SoFi and Happen Bank, offer terms up to seven years.

The table below illustrates roughly how much you might pay each month at different loan amounts, terms and rates.

Rates are current as of September 2026 and are subject to change. Your APR, which already includes the origination fee, will depend on your credit profile and Prosper Rating.

What Fees Does Prosper Charge?

Prosper doesn't charge a prepayment penalty, but it does impose these charges.

Rates are current as of September 2026 and are subject to change.

The origination fee is deducted from your loan proceeds before the money reaches you, so if you borrow $2,000 at a 9.99% origination fee, you'd receive about $1,800.20 but still owe interest on the full $2,000. If your origination fee was above 5% of your loan amount, you may be entitled to a partial refund of the unearned portion if you pay off the loan early.

One thing to note: Prosper offers no rate discount for enrolling in autopay or for paying creditors directly, a perk some competitors provide.

MoneyLion offers a service to help you find personal loan offers. Based on the information you provide, you can get matched with offers for up to $100,000 from our top providers. You can compare rates, terms and fees from different lenders and choose the best offer for you.

Do You Qualify for a Prosper Loan?

Here's what you'll generally need to meet Prosper's personal loan requirements:

• Be at least 18 years old.

• Live in a state where Prosper does business.

• Have a credit score of 600 or higher.

• Have income greater than $0.

• Have no more than nine credit inquiries in the past six months.

• Keep a maximum debt-to-income ratio (DTI) of 50%.

• Have no bankruptcy within the past 12 months.

• Hold two open credit accounts.

• Provide your Social Security number for identity verification.

• Have a personal bank account.

Prosper's own site notes that individual applicants generally need a credit score of 640 or higher to be approved, while the 600 minimum is more commonly reached with the help of a co-borrower. Co-borrowers must meet the same criteria, though Prosper calculates DTI based on the combined debts and income of both applicants. Repeat marketplace shoppers must also show they don't have any charged-off loans and haven't received a loan denial in the past four months.

Profile of a Typical Prosper Borrower

Prosper's advertised floor rate goes to the most creditworthy applicants, so it helps to know where typical borrowers land. Prosper publishes monthly investor performance data. For loans originated in August 2026, the most recent update available, the figures looked like this:

• Average loan size: $16,510

• Weighted average borrower interest rate: About 16% (this is the interest rate, not the APR, which also includes the origination fee).

• Median payment-to-income (PTI) ratio: 5.1%

• Typical borrower credit profile: Generally in the good-credit range

• Most common uses reported by Prosper: Debt consolidation, home improvement and medical or dental bills

How Does Prosper Compare to Other Lenders?

For a broader look at the space, see MoneyLion's guide to the best peer-to-peer loans. Here's how Prosper stacks up against Happen Bank (formerly LendingClub), Upstart and SoFi:

Rates are current as of September 2026 and are subject to change.

Prosper's APR range, loan amounts, terms and origination fee have been verified directly against Prosper's own disclosures as of September 2026. Figures for Happen Bank, Upstart and SoFi reflect each lender's publicly disclosed rates and terms as of the same date. All rates and terms are subject to change and should be confirmed directly with each lender before applying.

Happen Bank, originally a peer-to-peer marketplace, now operates as an FDIC-insured bank following its 2026 rebrand from LendingClub. It offers more flexible loan amounts and terms than Prosper, but its credit requirements tend to run a bit tighter. Upstart also uses proprietary, artificial intelligence (AI)-enabled underwriting to serve borrowers with thin or imperfect credit. It offers a lower starting APR and higher loan amounts than Prosper, but its terms are limited to three or five years. SoFi generally caters to borrowers with stronger credit and offers longer terms, higher amounts and an optional origination fee, but it typically requires a higher credit score to qualify than Prosper does.

Why It Matters

Choosing a personal loan is about more than the sticker-rate APR. Prosper's blend of fair-credit access, joint-application flexibility and non-traditional underwriting can open doors a bank might close, but the origination fee, investor-funded timeline and 2025 data breach are real costs and risks that affect your wallet and your privacy. Weighing those trade-offs against Happen Bank, Upstart and SoFi before you apply can save you money and hassle.

Is Prosper Legit and Safe?

Prosper is a legitimate, licensed lender. Although its funding model is unconventional (investors, not Prosper itself, supply the money), the loans are originated by WebBank, an FDIC-insured partner bank. The Better Business Bureau (BBB) lists Prosper as an accredited business with an A+ rating, and Prosper holds an excellent 4.6 TrustScore on Trustpilot from more than 14,000 reviews. The Consumer Financial Protection Bureau (CFPB) logged 39 personal-loan complaints about Prosper Marketplace in 2024, most involving getting the loan and problems with the payoff process, and closed 37 with an explanation and two with nonmonetary relief.

Prosper doesn't rank at the top of J.D. Power's 2026 U.S. Consumer Lending Satisfaction Study. American Express® led the personal loan category with a score of 779, followed by PenFed Credit Union (736) and Discover® (731), against a category average of 706. J.D. Power's public results don't break out Prosper's individual score, but the study found that funding speed is now the single biggest driver of borrower satisfaction. Satisfaction drops 47 points when funding takes more than a day after approval, which is worth keeping in mind because Prosper's funding window can stretch to 14 business days for some borrowers.

Prosper also disclosed a significant data breach. The company discovered unauthorized database activity on Sept. 1, 2025, and publicly disclosed the incident on Sept. 17, 2025. Its investigation, which concluded in November, found that between June and August 2025, personal information, including names, Social Security numbers, dates of birth, bank account and Prosper account numbers, driver's license and passport numbers, and tax information, had been accessed through queries against systems that store customer and applicant data. Prosper said its investigation found no evidence of unauthorized access to customer accounts or funds. Third-party breach trackers have reported that the incident affected roughly 17.6 million email addresses, though Prosper's own public notice doesn't confirm a specific number. Prosper began mailing notifications on Dec. 9, 2025, and is offering affected individuals two years of complimentary credit monitoring and identity restoration through Experian.

If you're a current or prospective customer, it's smart to monitor your credit, watch for suspicious activity and use strong, unique account credentials.

How Do You Apply for a Prosper Loan?

1. Gather your information. Have your Social Security number ready along with income documentation, like recent pay stubs.

2. Prequalify online. Prosper lets you check your rate and estimated monthly payment without a hard inquiry. You'll enter a desired loan amount and some personal details.

3. Select an offer. At this point, you'll provide your Social Security number for verification.

4. Review the contract. If you accept, Prosper pulls your credit with a hard inquiry.

5. Complete your application. Prosper may request additional documentation, usually within five business days.

6. Receive your funding. Once an investor funds your loan, Prosper initiates a transfer to your bank account. This step can take one to 14 business days.

You can also apply through Prosper's mobile app or over the phone, though neither option supports joint applications.

Common Mistakes To Avoid with a Prosper Loan

• Skipping prequalification. Applying cold means a hard credit inquiry before you know your likely rate. Prequalifying first triggers only a soft pull.

• Ignoring the net-proceeds math. The origination fee comes out before you get funded, so a $10,000 loan can land closer to $9,100 while you still owe interest on the full amount.

• Comparing interest rates instead of APRs. A lower interest rate with a high origination fee can cost more than a slightly higher rate with a lower fee, so use APR to compare offers.

• Overlooking the 15-day grace period. A payment that's more than 15 calendar days late triggers a fee of $15 or 5% of the unpaid portion of the monthly payment, whichever is greater.

• Assuming funding is instant. Because investors fund the loan, money can take up to 14 business days to arrive for some borrowers, so plan around that timeline for time-sensitive expenses.

The Bottom Line

Prosper is a reputable peer-to-peer lending marketplace worth considering if your credit score is 600 or higher, especially if you need a co-borrower because relatively few lenders allow joint applications. That said, other lenders cater toa lower-credit crowd or skip the origination fee for well-qualified borrowers, and Prosper's funding timeline and 2025 data breach are both worth weighing before you apply.

Consider prequalifying with a few lenders to compare rate, term and fees before you accept a Prosper personal loan.

Key Terms

• Peer-to-peer (P2P) lending marketplace: A platform that connects borrowers with individual or institutional investors who fund loans, rather than a bank supplying the capital directly. Prosper originates its loans through WebBank, an FDIC-insured partner bank.

• Fixed APR: An annual percentage rate that doesn't change over the life of the loan, keeping monthly payments predictable. Prosper's fixed APRs range from 8.99% to 35.99%.

• Origination fee: A one-time processing charge deducted from your loan proceeds before disbursement. Prosper's origination fee ranges from 1% to 9.99%, with a partial refund possible if you paid more than 5% and paid off your loan early.

• Prosper Rating: A grade Prosper assigns during underwriting, based partly on non-traditional data, that helps determine your APR and lets investors evaluate risk.

• Debt-to-income ratio (DTI): The percentage of your gross monthly income that goes toward existing debt payments. Prosper requires a maximum DTI of 50% to qualify.

• Co-borrower: A second applicant who shares responsibility for repaying the loan and whose income and credit can help you qualify or secure a lower rate. Prosper is among a limited number of lenders that allow this.

• Soft credit inquiry: A preliminary credit check, used during prequalification, that doesn't affect your credit score. A hard inquiry occurs only once you formally accept a Prosper loan offer.

Summary generated by AI, verified by MoneyLion editors

Sources

• Prosper Personal Loans

• Prosper Borrower APR Disclosure

• Prosper Compliance Disclosures

• Prosper Loan Fees FAQ

• Prosper Performance Update, August 2026

• Prosper Notice of Data Breach

• 2026 J.D. Power U.S. Consumer Lending Satisfaction Study

• Consumer Financial Protection Bureau: Consumer Complaint Database

• CFPB: What Is a Debt-to-Income Ratio?

• IdentityTheft.gov

Summary generated by AI, verified by MoneyLion editors

FAQ

Here are quick answers to common questions about Prosper personal loans:

What Credit Score Do You Need for a Prosper Personal Loan?

Prosper's stated minimum is a 600 credit score, which sits in the fair-credit range. In practice, solo applicants often need a score closer to 640 to get approved, while applying with a co-borrower can help you qualify at the lower threshold. Verifiable income, a debt-to-income ratio of no more than 50% and at least two open credit accounts are also required.

How Much Does a Prosper Loan Cost?

Prosper charges fixed APRs from 8.99% to 35.99%, and its own representative disclosure example for a three-year loan works out to about 24.19% APR. The APR already includes an origination fee of 1% to 9.99% that's deducted from your proceeds, so you receive less than you borrow while still repaying the full amount. Comparing APRs, not just interest rates, gives you the truest cost.

How Long Does It Take To Get Money from Prosper?

Funding can arrive as soon as one business day after your loan is finalized. Because Prosper uses an investor-funded marketplace, some loans can take up to 14 business days to fund, and your own bank's processing time affects when the money lands.

Does Prosper Allow Co-Borrowers?

Yes. Prosper is among the relatively few lenders that accept joint applications, and a co-borrower's income and credit can improve your approval odds or lower your rate. Prosper offers joint loans but not co-signed loans, where the second person is responsible without access to the funds.

Is Prosper Safe To Use after Its 2025 Data Breach?

Prosper is a licensed marketplace whose loans are originated by WebBank, an FDIC-insured bank, and it holds an A+ rating from the BBB. It disclosed a 2025 data breach affecting personal information accessed between June and August of that year, and it said its investigation found no unauthorized access to customer accounts or funds. Affected users can get two years of complimentary credit monitoring through Experian, so it's worth reviewing the disclosures, watching your credit and using strong account security before you apply.