Do I have to pay anything out of pocket to obtain a loan?

There are no upfront fees for applying for a loan through Prosper. A one-time fee is charged if your loan is funded and money is transferred to you.

This fee is called the “Origination Fee” and is a percentage of the amount borrowed (1%-9.99%, depending on Prosper Rating). It is taken from the loan immediately, before loan proceeds are transferred to your account. This means that if you apply for a loan and need an amount to purchase something specific or pay off a balance on a credit card, make sure you ask for enough to cover both the expense and the fee.

You will only pay this fee if you receive the loan. If you prepay the loan, any amount of the origination fee above 5% of the original principal amount of the loan is eligible for a refund.