Prosper is a peer-to-peer lending network that provides personal loans for any purpose, including:
- Debt consolidation
- Home improvement
- Business start-ups
All loans have a 36-month term and no prepayment penalty. Rates start at 7.50%.
Essentially, Prosper takes the bank out of the lending equation. Every day individual investors—not big banks—lend money to Prosper borrowers. As borrowers repay loans, investors earn back their principal plus interest.
For example, I applied for a Prosper loan three years ago to consolidate $11,500 of high-interest credit card debt. My loan was funded (and is now paid-in-full), saving me about 5% on interest…or about $1,200!
GET A PERSONAL LOAN WITH PROSPER
You may borrow between $1,000 and $25,000 on Prosper for any reason. It’s fast and free to create a Prosper loan application online; your interest rate will be determined by your credit, income, and the number of investors bidding on your loan (the more investors that compete to lend you money, the lower your rate will go).