What are Prosper Personal Loans?

Prosper personal loans help you with personal lending. The company, which is the first company to start the peer-to-peer lending and was established in the year 2006, provides unsecured loans to borrowers having good to excellent credit scores. The borrowers should have a credit score of at least 640 to qualify for prosper personal loans. Usually, Prosper borrowers have an average credit score of 710. Through its online platform, Prosper has generated more than $8 billion in personal loans by matching borrowers to potential investors.

First of all, we must know about what is a Personal loan?  A Personal loan is an unsecured loan that helps to fulfill your current financial requirements. Prosper Personal loans are one which is not based on collateral. Prosper Personal loans are based on other factors, such as the credit score of an individual, as shown in their credit score report. Prosper personal loans are provided for a fixed period of time.

You may apply for a personal loan online and have your credit score pre-approved in as little as 60 seconds without hampering your credit score. You will improve your credit by consolidating your debt with a personal loan. You will have a single installment loan, rather than having many payments to make for all your debts and credit cards. This lowers your credit utilization ratio in the process which can improve your credit score.

If you are prepared to consolidate your high-interest credit cards and debts, then the first step is to find the right creditor. You might go for a loan through a traditional bank, but online peer to peer lenders like Prosper has a lot to offer. Read our in-depth guide to get a personal loan through Prosper and to determine if it suits your borrowing needs.

How Prosper Personal Loans Work?

Prosper is a peer-to-peer creditor offering unsecured and individually funded personal loans. You put a listing on the web to receive a loan explaining how much you want to borrow, and the cause for which you require the money for. Investors look at the different listings of loans and decide which ones they wish to fund.

Once the loan is funded, you must go through Prosper personal loans’ process of verification and documentation before you can get the money. You must make one payment, which also includes the money paid as interest, to Prosper per month after the loan funds are issued. The payment is split among individual investors who have been ponying up money for the loan.

Who can get Personal loans through Prosper?

You must be at least 18 years of age and a U.S. citizen to apply for Prosper personal loans. You must also live in a state where Prosper personal loans are available. Iowa, Maine and North Dakota are currently excluded from that list. All applicants must have a bank account with a minimum credit score of 640 (Prosper uses Experian to test the credit scores). The initial rate test only counts as a soft investigation and will not impact your credit but hard research would appear on your credit report if you apply for a loan and if it is funded. Prosper also assigns a risk ranking for lenders based on its method of internal credit scoring.

How to apply for a Personal loan?

First of all, we must know about how to apply for a personal loan? Checking the rate is the first step in receiving a Prosper loan. To get started, fill in the amount you would like to borrow, the cause for which you want to borrow the money. You must fill these details on Prosper personal loans’ online form for the loan. Prosper examines your details and estimates whether you are qualifying for loans or not. You can set up a loan listing from their online portal.

Listings remain active for 14 days, and investors need to chip at least 70 percent of the amount that you are appealing to get the money. If the loan is not funded to at least the 70 percent mark, the listing will be canceled and you will have to start with a new online listing all over again.

Once you reach the point where your listing of loans is fully funded, the next step is the verification of the loan. This is a three-stage method used by Prosper to verify your identity and financial information before you release the loan proceeds. You will have to submit documents that Prosper requests at this stage, like tax form, pay stubs or copies of your ID.

You will be able to get your hands on the loan money after the verification and loan analysis are complete. It usually takes around 1 or 2 days before electronically depositing funds into your bank account.

Where to get a Personal loan

After discussing how to apply for a personal loan, let us discuss the answer to the question- where to get a personal loan? You can get a personal loan instantly from some lending companies by applying online or you can get a personal loan from most of the banks available. You can receive instant approval with minimal paperwork. You can borrow your amount without promising any collateral and disburse your loan in just 24 hours. Many banks offer personal loans at somehow low-interest rates to salaried professionals.

Conclusion

We hope that your doubts and queries are solved, and you know the answers to questions like how to apply for a personal loan? What is a personal loan? Where to get a Personal loan? What are prosper personal loans? Prosper personal loans is made for a fixed period of time. It is a smart move to take out a personal loan to combine your debts and credit cards if you want to get a lower Annual Percentage Rate and want to have only one payment to deal with each month.