How are payments allocated to a borrower’s loan balance?

You can find a full breakdown of payments in the Payment History of your Notes section, located in your online account. Generally, when a borrower makes a payment toward their loan, we apply it to their remaining balance in the following order:

Borrower fees

We first subtract any fees accrued by the borrower before applying the payment toward interest or principal. Those fees may include:

  • non-sufficient funds (nsf) fee: Failed payments accrue an NSF fee. NSF fees are paid to Prosper.
  • check payment fee: Check payments accrue a processing fee. Check payment fees are paid to Prosper.
  • late fees: Payments more than 15 days late accrue a late fee. Late fees are paid to investor(s).


Next, we apply the payment toward any unpaid interest on the account. Interest is paid to the investor(s) and is included in the total received amount in your Note Details.


Lastly, after fees and interest have been paid, we apply any of remaining payment amount to the outstanding principal balance. Payments applied to a principal balance are paid to the investor(s) and are included in the Total Received amount in your Note Details.