Prosper Loans Review

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Prosper Loans is an innovation in the personal lending sector. Prosper Loans connections personal lenders to people who need money without the need for major banks.

When it comes to traditional lending systems, they simply have not kept pace with the world we live in. Because traditional systems rely on financial institutions, borrowing money becomes more and more expensive. It is a pity that we simply cannot cut out the middleman, isn’t it?

That is what the people at Prosper Loans thought as well and they have built there business model around this idea. The concept is simple, would-be borrowers create a listing, stating the loan amount and terms and the loan purpose.

Would-be lenders will review the Prosper Loans listings and then decide whether or not to offer financing. The lenders have a good investment opportunity and the borrowers have access to finance at a reasonable rate – the APR rates range from a minimum of 6.73% to a maximum of 35.36%.

So How Does Prosper Loans Actually Work?

You create a listing, the site has tips on how to do this to maximize your chances of success. Prosper Loans will then verify your identity and check your credit score. You will then be assigned a Prosper score. This is an indication to potential lenders what your credit risk is. This allows them to make an informed decision.

Prosper Loans Lenders then commit to providing funds – once the loan is fully funded, the loan amount, less the closing fee, is paid into your banking account.

An automatic payment program can then be put into place. If this is not the case, you do need to ensure that you make the payments on time. (If a payment is more than 15 days late, you will be liable to pay penalties.)

What Next?

If you decide that this is a good idea for you, you need to sign up as a borrower on the site. You complete an application stating the reason for the loan and the amount that you are looking for. The verification process will then begin. Prosper Loans will confirm that you are who you say you are and check your FICO score. You may be asked to provide documentary evidence at this stage. It is important to provide everything that they ask for.

The status of the verification appears on your listing – the most successful listings are the ones that are fully verified.

The listing stays in effect until it is fully funded or for a period of two weeks. Should your application be unsuccessful, you will not be liable for any fees and may create a new listing.

The downside with this form of financing is that you may not get an answer quickly – it could take as long as two weeks. The upside is that there is a cap on the amount of interest that can be charged – on some other loan matching sites, you could pay a whopping 1200% interest.

You are able to apply for installment finance over a period for a period of 3 to 5 years, depending on your Prosper rating. Your Prosper Loans rating can improve over time – say, for example, you pay your current loan on time, that impacts your overall rating.

Overall, Prosper Loans is quite a good solution for both lender and borrower – it is a win win situation at its best.

Need a loan? Click the button below or give us a call today at 1-855-862-5164.

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