How does Investing through Prosper work?

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 3- 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.

Was this helpful?