A unique alternative investment
opportunity in peer-to-peer lending
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5.6
6.6%
Average 3-year rolling return1
5.7%
Average historical return2
IRA
Tax-deferred investment option
Opportunity to earn monthly passive income
$20B+
invested in people since 2005
Trusted by our customers
Access an alternative asset class with responsive pricing
A platform where you can invest in consumer loans with compelling rates.
*Pricing is represented by the weighted average borrower interest rate (weighted based on Loan Amount) for all loans originated through the standard product program during the month listed in the chart (the “monthly origination vintage”), less Prosper’s 1% servicing fee. Pricing does not and is not intended to reflect either the historical or estimated returns of the Notes available on the platform.
Hands-off or hands-on, you choose
Set it and forget it with Auto Invest
Get started with one of our pre-set target investment mixes, or create your own custom mix. The interest earned is automatically reinvested in new loans, ensuring your money is working for you.
Fine-tune your investment portfolio
Select which personal loans you’d like to invest in. You’ll have the financial details to help you make savvy decisions. You can check out listings here.
Start investing
$20B+
invested in people since 2005
Connecting through peer-to-peer investing
Connecting through peer-to-peer investing
Connecting through peer-to-peer investing
Our investing platform connects investors with thousands of creditworthy borrowers
1
Borrowers apply for loans from$2,000–$50,000
2
Investors can invest small portions in a variety of loans
3
Investors earn interest as borrowers make monthly payments
$20B+
invested in people since 2005
Our borrowers
We provide access to 2-5 year personal loans to qualified borrowers. They then repay in fixed, monthly payments. Here are some things we may check for:
- Credit scores from 600+
- Income and bank statements
- 300+ data points to prevent fraud
How peer-to-peer investing works
Open an account
& connect your bank
The process is quick & easy, and you can start investing with as little as $25
Choose your
investments
You can invest in small portions
of a variety of loans
Opportunity to earn monthly passive income
Interest can be automatically reinvested through Auto Invest or Recurring Invest
Start investing
Explore our Auto Invest mixes3
Prosper loans are assigned a rating from AA (lower risk, lower return) to HR (higher risk, higher return). Choose a mix with our Auto Invest tool to build your portfolio.
Explore our Auto Invest mixes3
Prosper loans are assigned a rating from AA (lower risk, lower return) to HR (higher risk, higher return). Choose a mix with our Auto Invest tool to build your portfolio.
AA-B Weighted Mix
Questions about investing?
We're here to help
Visit the Prosper Help Center for more support
Prosper is an online peer-to-peer lending marketplace, where creditworthy borrowers can request a loan and investors can invest in “notes” (or portions) of each loan.
After a borrower accepts their loan offer, we may verify their application information. Upon borrower acceptance, investors have up to 14 days to commit funds to the loan through their Prosper account. Once a borrower passes any additional verification requirements and one or more investor(s) commit enough funds to the loan it’s ready for origination.
Loans through Prosper are amortized, meaning borrowers make fixed monthly payments throughout the duration of their 2, 3, 4 or 5 year term. Each payment is comprised of principal, interest, and any applicable fees. Investors receive a portion of those payments that are proportional to their pro rata share of the loan. These funds are deposited directly into investors’ Prosper Accounts.
With any debt, there’s always the risk that a borrower can default on their loan, which could result in a loss for the investor(s) who invested in the loan. Loans are unsecured obligations, meaning they are not secured by any collateral of the borrower. To assess the risk of each loan before committing funds, investors should review the loan request details and the Prospectus.
Retail investors must be United States permanent residents or citizens who are 18 years of age or older, with a valid Social Security number (or other Taxpayer Identification Number, if investing through a trust, estate, or corporate entity) and checking or savings account. Retail investors must reside in a state that is open to Prosper investors and may also be required to meet suitability requirements established by their state of residence. See more state requirements here.
While we can’t make any specific recommendations; we have found that investors generate a more stable return when they diversify their investment through many different Notes, with each Note corresponding to the borrower loan of a different borrower. Prosper’s Notes are offered by Prospectus which is an official document that describes all the key information for the investments we offer. You can find our Prospectus on our website at the bottom of any page at www.prosper.com.
For individual general investment accounts, the minimum amount you can invest is $25.
For IRAs managed by our designated custodians, Millennium Trust Company and Alto IRA, the minimum investment amount required to qualify for custodian fee reimbursem*nt is $5,000 in year 1 and $10,000 in all subsequent years. Please note that these minimums refer to the amount invested in Prosper Notes — cash balances will not be counted.
The cash balance of your Prosper investment account is FDIC insured by Wells Fargo Bank, N.A.
The FBO account that we maintain at Wells Fargo Bank, N.A. for the benefit of investors is FDIC-insured on a “pass through” basis to individual investors, subject to applicable limits. This means that each individual investor’s balance is protected by FDIC insurance, up to the aggregate amounts established by the FDIC. Other funds the investor has on deposit with Wells Fargo may count against the FDIC insurance limits.
Please be aware that any funds lost due to borrower default or poor Note performance are not FDIC insured.
Personal Loans offered through Prosper are 2, 3, 4 and 5 year terms – meaning borrowers make fixed monthly payments throughout the duration of their loan’s term. Each payment is comprised of principal, interest, and any applicable fees. Investors receive a portion of those payments that are proportional to their pro rata share of the loan. These funds are deposited directly into investors’ Prosper Accounts as uninvested available cash.
Any uninvested available cash in your account is FDIC-insured and can be withdrawn whenever you wish, but your investment (principal and interest) is repaid to you over the course of the underlying loan term.
If the borrower does not satisfy their monthly payment within 15 days of the due date, the borrower will be charged a late fee. Late fees are 5% of the payment amount or $15, whichever is greater (unless state restrictions apply).
We divide and distribute the late fees proportionately among the investors in the corresponding Notes, subject to deductions for collection fees and servicing fees.
Collections
If a loan is more than one day past due, we may collect on it directly or we may refer it to a third-party servicer or collection agency. Once a loan reaches 121 days past due, it is charged off. Historically, recovery rates on loans once they have entered into collections range from 7-12%.
Investors cannot attempt their own collections efforts or attempt to contact borrowers directly.
Feb 29 2024
Feb 29 2024
IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT.
To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account.
What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to
identify you. We may also ask to see your driver’s license or other identifying documents.
Feb 29 2024
1.“3 Year Rolling Return” is the weighted average three year rolling historical return for loans originated through Prosper’s standard product program, based on loan performance between January 1, 2021 and December 31, 2023 (the “3 Year Performance Period”). To be included in the rolling historical return (“3 Year Rolling Return”) calculation, the loan must either (a) have an active principal balance, or (b) be subject to a cash transaction that affects the loan’s balance, in each case during the 3 Year Performance Period. The 3 Year Rolling Return is based on actual payments (other than principal) received by the investor net of fees and losses (including from charged-off loans) on loans during the 3 Year Performance Period.
We calculate the 3 Year Rolling Return for loans originated through Prosper as follows. First, for each month during the 3 Year Performance Period, we calculate: (a) the sum of the interest paid, plus late fees, minus servicing fees, minus collection fees, in each case on active loans, plus net recoveries on charged-off or defaulted loans, plus net debt sale proceeds on sold loans, minus gross principal losses for each loan that charged-off or defaulted in the month (the “net income amount”); and (b) the sum of the principal balances outstanding on active loans at the end of the month (the “principal balance amount”). We then calculate (x) the “aggregate net income amount” by summing the net income amount for all months in the 3 Year Performance Period, and (y) the “aggregate principal balance amount” by summing the principal balance amount for all months in the 3 Year Performance Period. Finally, we divide the “aggregate net income amount” by the “aggregate principal balance amount”, then annualize the result to get the “3 Year Rolling Return” for the 3 Year Performance Period. For purposes of this calculation, “active” means loans that are either (i) current in payments or (ii) delinquent, provided that delinquent loans that have charged-off or are in default are not considered active. Loans that have paid off are also not considered active.
The Rolling Return calculation (a) is updated semi-annually; and (b) excludes the impact of servicing-related corrective non-cash adjustments that may modify the outstanding balance or status of a borrower loan. The actual return on any Note depends on the prepayment and delinquency pattern of the loan underlying each Note, which is highly uncertain. Individual results may vary. Rolling historical performance is no guarantee of future results and the information presented is not intended to be investment advice or a guarantee about the performance of any Note.
2. Weighted average historical return for loans originated through Prosper as of Aug 31 2023. To be included in the historical return (“Historical Return”) calculation, the loan must have originated (a) on or after July 1, 2009, and (b) at least 12 months prior to the calculation date. Historical Returns are based on actual payments (other than principal) received by the investor net of fees and losses (including from charged-off loans). We calculate the Historical Return for loans originated through Prosper as follows. First, loans are separated into distinct “Groups” based on the specific month and year in which they were originated and their Prosper Rating at origination. For each Group, we calculate: (a) the sum of the interest paid, plus late fees, minus servicing fees, minus collection fees, in each case on active loans, plus net recoveries on charged-off or defaulted loans, plus net debt sale proceeds on sold loans, minus gross principal losses; divided by (b) the sum of the principal balances outstanding on active loans at the end of each day since origination. We then annualize the result to get the “Historical Return” for the Group. Once this calculation is performed for every Group, we compute the cumulative outstanding principal dollar weighted average of their Historical Returns. This gives us the “weighted average Historical Return” for loans originated through Prosper. For purposes of this calculation, “active” means loans that are either (i) current in payments or (ii) delinquent, provided that delinquent loans that have charged-off or are in default are not considered active. Loans that have paid off are also not considered active.
The Historical Return calculation (a) is updated monthly; and (b) excludes the impact of servicing related corrective non-cash adjustments that may modify the outstanding balance or status of a borrower loan. The actual return on any Note depends on the prepayment and delinquency pattern of the loan underlying each Note, which is highly uncertain. Individual results may vary. Historical performance is no guarantee of future results and the information presented is not intended to be investment advice or a guarantee about the performance of any Note.
3. To establish each pre-set Auto Invest mix, Prosper Notes are distributed across all risk ratings from AA to HR according to Historical Inventory of each risk rating, then: (x) weighted towards AA, A and B risk ratings, for the AA-B Weighted mix; (y) weighted towards D, E, and HR risk ratings, for the D-HR Weighted mix; and (z) unweighted, for the Marketplace Mix. Historical Return range represents the dollar weighted 10th-90th percentile of the Weighted Historical Returns for the mix of loan ratings. Historical Returns are based on actual payments (other than principal) received by the investor net of fees and charge-offs on loans originated through the Prosper platform. To be included in the Historical Return calculation, the loan must have originated (i) on or after July 1, 2009, and (ii) at least 12 months prior to the calculation date. We calculate HistoricalReturns for loans with this rating or mix of ratings (as applicable) as follows. First, for each origination month, or “Vintage”, we calculate (for all eligible loans): (a) the sum of the interest paid, plus net recoveries, plus net debt sale proceeds, plus late fees, minus servicing fees, minus collection fees, minus gross losses from charge-offs; divided by (b) the sum of the average principal balances outstanding at the end of each day of the calculation month. We then annualize the result to get the “Historical Return” for the Vintage and rating. This calculation is performed for every Vintage, and each applicable rating. Finally, we compute the origination dollar weighted Historical Return of each Vintage and relevant rating to get their “Weighted Historical Returns”.
The actual return on any Note depends on the prepayment and delinquency pattern of the loan underlying each Note, which is highly uncertain. Individual results may vary. This information is not intended to be investment advice. Historical performance is no guarantee of future results or a guarantee about the performance of any Note. Based on data from current Historical Inventory. Historical Return information as of Aug 31 2023.
Historical Inventory refers to the proportion of Notes on the marketplace represented by each Note risk rating. It is based on the most recent month (approximately) of inventory of the marketplace; provided, however, that Prosper reserves the right to apply such further adjustments to the Historical Inventory and/or the related pre-set target mix as it deems necessary to more accurately reflect the projected availability of each Note risk rating on the platform for the coming month. Based on data fromAug 01 2023 – Aug 31 2023.
Prosper’s borrower payment dependent notes (“Notes”) are offered pursuant to a Prospectus filed with the SEC. Notes are not guaranteed or FDIC insured, and investors may lose some or all of the principal invested. Investors should carefully consider the risks, uncertainties, and other information described in the Prospectus before investing. Investors should consult their financial advisor if they have any questions or need additional information. Nothing on this page is intended to be investment advice.
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