Proper Prosper Etiquette

As with any new product or service, it helps to have some common guidelines and conventions established about how to use it and how to interact with others. In that spirit, we offer a simple guide to happiness and well-being on Prosper.

Recognize differences between people using thesite

Different people use Prosper in different ways. Recognize and respect these differences, and treat others the way you would like to be treated.

Prosper welcomes borrowers of every financial background and credit grade. As a lender, you don't have to bid on any listing that doesn't appeal to you. Others may choose to bid on their listing, but that is the decision of those lenders. Different lenders have different reasons for placing bids: some bid out of kindness, some bid for profit. Both are acceptable reasons for lenders to bid at Prosper.

Lenders are just people who have a little extra money and are willing to lend it out. Don't assume that they have unlimited resources and can bid on every listing. Don't be offended if they haven't bid on your listing. And don't bug them about it. Also bear in mind that many people bid using standing orders, without personally reviewing the listings.

Group leaders are responsible for their own groups. As such, group leaders may be very particular about who they let into their group. If you don't get accepted, don't take it personally: you might not have fit their criteria. Some group leaders might not respond to your group request at all. Just move on and find another group to join, or start your own!

Act respectfully

Spam is annoying and disrespectful, and may actually work against your objective. Spam is normally defined as "unsolicited commercial email", and includes any message that is both unsolicited (the recipient did not ask to receive it), and commercial in nature (the recipient is asked to buy a product or service). Prosper takes a broader view of what is considered spam—often broader than the definition of spam under federal and state spam laws.

Prosper considers the following to be spam:

* Borrowers sending messages to lenders saying "Bid on my loan!"
* Group leaders sending messages to existing borrowers saying "Join my group!"

How can sending such messages work against you? Most lenders who have reported spam on Prosper noted that this kind of message from a borrower, rather than being an enticement, is actually a warning flag against bidding on that listing. So if you spam a lender, you might have actually reduced your chances of receiving a bid from the lender.

If you want to send a short thank you note to your lenders or fellow group members, that's okay. But try to keep unnecessary chatter to a minimum.

Respect the privacy of others on the marketplace. If you happen to know your group leader's name, but that information is not published publicly elsewhere, please do not include "thanks to my group leader Jill Smith" in your listing. This is a violation of your group leader's privacy, and undercuts the effectiveness of the marketplace.

Communicate truthfully

In much the same way that spamming lenders for bids can reduce your chances of getting bids, making false (or improbable) promises in your listing or group description can also work against you.

Use simple forthright language that clearly describes your situation in ordinary words. Keep the promotional language to a minimum. Avoid vulgarities.

Not OK	OK
Guaranteed greatest business investment ever!!! Can’t lose!!!	I need the loan to buy a commercial espresso machine for my new restaurant.
Our group will never-ever-ever miss a payment!!! That’s right!!! Never!!!	We are a group of friends who has known each other for 10 years. We all live in Baltimore.

Lastly, falsifying information on a credit application is a crime. Prosper will end any listing and close any group or account if we suspect fraud.

Don't attempt to collect on late payments

Under no circumstances should you attempt collection on a late payment yourself. Compliance with all state and federal laws while attempting to collect a delinquent loan is not trivial. When necessary, Prosper ensures all collection activity is performed by licensed and professional collection agencies. Lenders who undertake debt collection (even if they are a debt collector by trade) are in violation of Prosper legal agreements and will undermine the collection agency's ability to do their job. Moreover, in doing so you run the real risk of creating a legal liability for yourself. Learn about Prosper collection agencies

Group Ratings

What are group ratings?

A group's rating is a measurement of that group's performance in paying back its Prosper loans. Specifically, the group rating is an expression of a group's performance against expected (historical) default rates.

"Expected default rates" are based on Experian historical default rates, which are available to lenders on every bidding page.

	Not yet rated Groups are not rated until they have at least 15 total payments billed or at least one late payment
	1 star Underperforms expected defaults by 60% or more
	2 stars Underperforms expected defaults by 20% - 60%
	3 stars Performs within 20% of expected default rates
	4 stars Outperforms expected defaults by 20% - 60%
	5 stars Outperforms expected defaults by 60% or more

Prosper Fees

Prosper fees are very straightforward. All of the fees we charge are on this page. There are no fees to use the site, post a listing or place bids. Fees only result from obtaining a loan as a borrower or receiving payments on a loan as a lender.

Borrower Fees

1% closing fee

If you are a borrower and your loan is funded, you will be charged 1% of the amount borrowed or $25, whichever is greater.

For example, if you take a loan for $5,000 to help pay for your wedding, you will be charged $50. The 1% is taken from your loan immediately, so in this example your loan is for $5,000 and you'd receive $4,950 in cash deposited into your bank account.

This means that if you're using Prosper to purchase something specific (like a wedding dress), make sure you ask for enough to cover the dress and the 1% closing fee.

1% Non-electronic payment charge (optional)

Borrowers who elect to pay their loans through bank drafts, rather than the free electronic payment service through ACH, will have 1% of additional interest added to their loan's interest rate. This added interest will be paid to Prosper for processing bank draft payments, not to lenders.

Prosper Fees

Lender Fees

0.5% annual loan servicing fee

The annual servicing fee is accrued daily, and is based on the current outstanding loan principal. This fee is accrued the same way that regular interest is accrued on the loan.

For example, on a $5,000 loan at 10% interest, the servicing fee would be $40.40 over its full 3 year length. Because the servicing fee is based on the daily principal balance (which is an amortized value), it will change on a monthly basis, and the servicing fee for a loan will vary based on the interest rate and the length of the loan.

Collection agency recovery fee

In the event that one of your loans becomes more than 1 month late, Prosper will assign a professional collection agency to attempt to collect the overdue amount. Each collection agency has its own fee structure, but will only collect a fee for their services if funds are recovered. Learn more about collection agencies and their specific fees.

Prosper Fees

Delinquency Fees

$5 failed payment fee

If your automatic monthly payment fails due to insufficient funds or because you closed your bank account and forgot to tell us, you'll be charged $5, which may vary depending on your state lending limits. This fee is paid to Prosper, and covers the fees that Prosper's bank charges for failed payments.

Late payment fee

If your monthly payment is 15 days late, you'll be charged a late fee, which depends on your state lending limits. Late fees are passed on to lenders; Prosper does not profit from late fees.

Note: Delinquency fees may vary based on regulations from the borrower's state of residence. View state lending limits for state-specific fees.

Are there any other fees?

No. There are no other fees of any kind.

Manual Bids

How do I place a bid?

To bid on loan listings, you must be a registered lender, and you must transfer funds to Prosper before you can start bidding. Learn about becoming a lender.

Once your account has funds for bidding, you are ready to go! Simply go to the "Lend" tab and search for a loan listing that you would be interested in bidding on and click on that listing's title.

When you get to the listing page, you can view some information about that listing:

• Requested: This is the dollar amount that the borrower is interested in borrowing.
• Lender rate: This is the current interest rate that lenders have to bid at, or below. If the loan is fully funded (there are enough bids to meet the loan amount requested by the borrower), lenders will have to bid less than the current listed interest rate to participate in this loan.
• Automatic funding: If displayed, this icon indicates that the borrower has selected an "immediate funding" listing—it has nothing to do with any superhero powers the borrower may have. Immediate funding means that the listing will close as soon as the requested amount is funded. This scenario can happen when the borrower is less interested in getting the absolute lowest interest rate, and is more interested in getting a loan quickly.
• Funded: This shows how much of the amount the borrower is requesting that has been funded by bids. If the full amount requested is funded, a "100%" icon is displayed next to the amount funded.
• Bids: This shows how many bids have been placed on this particular listing. Clicking on the number of bids will display the bid history (learn more below).
• Time left: This is how much time remains before the listing ends. Tick tock.
• Borrower rate: This is the current interest rate that the borrower must pay on their loan if their loan listing is matched. In some cases, the borrower rate shown on a listing may be higher than the lender rate. This can happen when the borrower's group takes group leader rewards. To understand how group leader rewards can shift the borrower interest rate, learn more about group leader rewards.
• Borrower APR: The borrower Annual Percentage Rate (APR) is the cost of your credit as a yearly rate. It is different from the borrower rate (or "note rate") because the APR factors in both the interest rate and the one-time fee Prosper collects at the time of loan funding. Learn more about borrower APR.
• Monthly payment
  The monthly payment is the amount that the borrower will pay for the requested amount at the current borrower interest rate. If the listing receives enough bids to drive the interest rate down, the monthly payment will also go down.

To begin placing a bid, click the "Place Bid" button.

You will then be asked to enter the following information:

• Amount: Enter the amount you wish to bid on this listing. You may bid as little as $50 and as much as the entire amount requested in the listing.
• Minimum rate: Enter the minimum interest rate that you would be willing to receive on the loan if you are a winning bidder. Unlike some auctions where the price is bid up, Prosper bids on your behalf down to your minimum rate. So if you are a winning bidder, there's a chance that the interest rate you receive on this loan will be higher than your minimum rate. How's that for a nice surprise? One other important note: your minimum rate is kept confidential from other bidders and the borrower—only you know what it is. When choosing a minimum rate, you can use the "Experian historical default rates" chart at the right of the bid page to help you determine the rate you should offer.
• Collection agency: You may select a different collection agency for each of your bids. The collection agency that you selected during lender account setup will be displayed here automatically.

• Support this group: If you would like this group's name to appear on your member page under "Groups I support," click this checkbox.

After clicking continue, you will be shown the bid data you specified on the previous page, and asked to confirm your bid. A few very important things to note about bidding before you click that "confirm bid" button:

• When you place a bid, funds are immediately set aside in your account for that bid.
• By placing a bid, you are committing and promising to fund and purchase the loan should your bid be matched.
• If you are a winning bidder, funds will be automatically transferred from your account to the borrower's account when the listing closes.
• If you are not a winning bidder, funds will be immediately made available for you to bid again elsewhere.
• Bids cannot be withdrawn at any time.

What interest rate should I specify?

When you create a listing, you specify the maximum interest rate that you are willing to pay, and lenders bid the interest rate down, unlike some other auctions where the price is bid up. Prosper displays average interest rates on funded loans, which can serve as a useful guide in determining what kind of interest rate you can expect.

Successful borrowers usually set a starting rate which is a few percentage points higher than past rates for their credit grade, group status, and amount requested. For example, if the historical interest rates chart says that borrowers with your credit grade, group status, and loan amount are getting interest rates around 12%, you might start the bidding on your listing around 14% to attract more lenders. Keep in mind, however, that the listing could close at the starting rate, so only specify a starting interest rate that you are prepared to pay.

What does it cost to borrow money?

There is one standard fee for obtaining a loan through Prosper. You will have to pay a fee of 1% of your loan amount if your loan is matched and funded. The 1% fee is deducted from the amount of your loan at origination. For example, if you asked for a $5,000 loan, the 1% closing fee would be $50, and the total amount you would receive at loan closing would be $4,950.

After your loan is funded you will, of course, have to pay interest on your loan. As long as you make timely loan payments, you will not have to pay any other fees.

Creating a Loan Listing

How do I create a listing?

Before you get into it, view a tutorial on borrowing money.

If you are not registered with Prosper, click the "Register now" button on the home page. You will be asked to fill out a quick registration form. Registration is free.

If you are not a member of a group, we recommend that you join a group before creating your listing. Borrowers who join groups with a good reputation are likely to receive more favorable bids because its members pay on time. Learn more about joining a group. If you don't want to join a group, you can still post a loan listing as an individual.

When you are ready to create your listing, click on the "Borrow" tab and click "Create a new listing now".

First, you will be asked to provide your social security number and a few other personal details so Prosper can verify your identity and pull your credit score. There is no fee to you for pulling your credit score, which we use to categorize your credit into one of eight credit grades. There is no fee to you for obtaining your credit score and grade.

This won't affect your credit score! Although we are making a request for your credit score, we're doing so at your instruction so no inquiries viewable by subsequent users of your credit report will be placed in your credit file. That means your credit score won't be affected when you register or post a listing. Only if you obtain a loan through Prosper will an inquiry that others can see be placed in your credit file.

You will also need to provide bank account information. If your loan is funded, your loan proceeds will be deposited in the bank account you specify. Additionally, if you choose, starting on the first month after funding, your monthly payments will be deducted automatically from your bank account. Learn more about monthly payments in manage your loan.

Your loan listing is what will inspire lenders to bid against each other to make you a loan. Your listing communicates very important details to lenders about you and your loan. Your listing will include what you need the loan for, how much, what group you belong to (if you belong to one), your credit grade, and additional data from your credit report which helps determine your grade. You can request a loan from $1,000-$25,000 (may vary by state), and you can also specify the maximum interest rate you want to pay. You decide how long you want your listing to be posted for bidding. You can add as much or as little personal information as you'd like, such as pictures or web links to a current project, like the independent film you're working on. You can review the details of your listing, including the estimated Annual Percentage Rate (APR), monthly payment, disclosures, and other legal terms.

If you belong to a group that requires listing review, your group leader will have up to 7 days to review your listing and approve or decline the listing. You may withdraw your listing at any time during this process.

Once your listing is active and posted on the Prosper marketplace, you'll be able to see it and track it on the "Lend" tab. You can easily monitor the bids you are receiving on the bid history page. Learn more about bidding.

Who can borrow at Prosper

Who can borrow money on Prosper?


A Prosper borrower is any person who is a U.S. resident with a bank account and a Social Security number or Individual Taxpayer ID. Borrowers must first be approved by Prosper's anti-fraud and identity verification systems before they can post a loan listing. Approved borrowers can request unsecured loans from $1,000 to $25,000 (may vary by state ) at rates they select. It is recommended that borrowers join a group before creating a listing to attract more favorable interest rates. No matter how good or poor your credit rating, or how high or low your level of income, all registered borrowers are allowed to post a listing on Prosper.

What kinds of loans are available on Prosper?

Borrowers can request 3-year, fully amortized, unsecured loans up to $25,000 (may vary by state ). In other words, you will have three years to pay off the loan in full with set monthly payments. You don't have to offer any collateral, like a car or your house, to guarantee the loan. There are no penalties for paying off your loan early or for making partial prepayments.

How quickly wiil I get my money?

Borrowers typically receive their loan within 2 to 4 business days of a match.

Group Leader Rewards

What are group rewards?

Group leader rewards are cash incentives earned by groups and group leaders when a new loan gets fully funded or an on-time monthly payment is made.

There are two types of group leader rewards:

Match reward: This is a one-time reward that is accrued by a group leader when a group member's loan listing gets funded. See the chart below for specifics.

Payment reward: This is a monthly reward that is accrued when a borrower's monthly payment is successfully paid on time. Payment rewards also vary by the borrower's credit grade. So a high grade means a smaller payment reward (because they are lower-risk). Group leaders can choose to receive all, some, or none of the payment rewards generated by their group members.

Group rewards by credit grade

Grade	Match reward	Payment reward
AA, A	$20	1%
B, C, D	$10	2%
E, HR, NC	$10	4%

How are rewards paid?

The group leader will receive match rewards one month after a group loan is funded as long as the loan is still outstanding (not repaid) and payment is current.

Payment rewards are paid after a 3-month withholding period to ensure the loan isn't bad right out of the gate. After 3 months, all current month payment rewards earned for that month are paid. At the end of the loan term, any remaining rewards withheld are paid in full.

Because, at this time, group leader rewards are paid directly to the group leader's primary bank account on file at Prosper, the group leader must have earned at least $25 in group rewards before a transfer is made. $25 is the marketplace-wide minimum transfer amount.

Can I choose how much to receive in payment rewards?

Yes. In fact, some group leaders do choose to receive payment rewards at all. For those who want to receive payment rewards, they can choose to take 25%, 50%, 75%, or 100% of the base group leader rewards in the table above. For example, a group that receives 75% of base group leader rewards will add 0.75% to an A or AA borrower's listing, 1.5% to a B, C, or D listing, and 3% to an E, HR, or NC listing.

Why would a borrower join a group that takes group leader rewards?

Here's the thing: groups are designed to help secure lower interest rates for borrowers, even after the group leader rewards are factored in. A borrower can get a good rate in either case:

• If they are in a group that does not take group leader rewards, the rate will be lower because the group leader reward will not be added.
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• On the other hand, if they are in a group that takes group leader rewards, the borrower may be perceived as less risky by lenders because of the presenc the group leader and the value of the group's reputation, which would drive the interest rate down.

Since there are benefits to being in a group, even if the group leader rewards are high, borrowers should consider joining a group. In the end, some lenders will prefer to loan money to borrowers who represent the least risk, while other lenders will be willing to take on a little more risk for a higher rate.

There is one last benefit to lenders of a group that takes group leader rewards: if one of those borrowers defaults, the lenders will share the first 3 months of earned group leader rewards. Every little bit counts!

Group Leader

What is a group leader?

Each group begins with a designated group leader who is responsible for setting up a group home page and inviting members. Some group leaders form groups based on their community interests or prior affiliations, such as membership in a club, social organization or religious association.

Group leaders have two responsibilities:

1. Set up the group home page.
2. Invite borrowers to join the group and create loan listings.

How do I create my own group?

If you are not registered with Prosper, you will be asked to fill out a quick registration form. Registration is free.

Once registered, click the "Become a Group Leader" link. You will be asked to provide your social security number and a few other personal details so that we can check and protect your identity. There is no fee to become a group leader.

Next, you will need to provide some basic information about your group. This will include the group name, a short description, a group "shortcut" (this will be a short web link for potential members to access when you invite them), and categories (see below).

Prosper is basically a community made up of all kinds of groups of borrowers. Potential lenders, borrowers, and future group members will search and find each other through Prosper's classification system of group categories. When you create your group, you will need to categorize it (you may select up to five categories). For example, if you are a group of soccer players, you would categorize your group under "Sports & Recreation / Ball Sports / Soccer."

Once your group information is complete, all of this information will be sent to the Prosper Group Services team, who will review your group application, and make a decision on your group application within a few days.

As a group leader, you can choose to receive group leader rewards as your group members repay their loans on time. You should add your bank account information to Prosper so that we will know where to send your group leader rewards.

While you're waiting for Group Services to review your new group request, you should view and update your group's home page! In fact, the more information you add about the group you want to create (including the description, pictures, and links), the more speedily Group Services will be able to approve your group. Learn more about editing your group profile, description, and pictures.

Can I lend or borrow if I'm a group leader?

Yes, you can lend and borrow on Prosper if you're already a group leader. If you want to borrow money, however, you will not be able to do so as a member of your own group; you will have to join another group. You are not allowed to borrow money as a member of your own group to avoid any conflict of interest.

Can I create more than one group?

Not at this time.

Can I recruit existing borrowers who don't have groups?

How friendly you are! But unfortunately at this time you cannot recruit existing borrowers. Since a borrower's interest rate is often tied to the existence (or absence) of a group, it is Prosper's policy to not let borrowers with currently active loans join a group. This may change in the future.

What are the most inportant tasks of a new group leader?

First, you should update your group's home page as much as possible. This is your voice to both potential borrowers and potential lenders, so you should spend some time making it attractive, or at least complete. Add some photos of your group, and include those on the page. Tell as much as you can about your group in the description—don't be shy! The more lenders and borrowers can learn about your group, the more likely they will engage with your group. Learn more about editing your group profile, description, and pictures.

Second, get out there and recruit borrowers! Since you will earn money when borrowers in your group listings that get funded, you should be knocking on the door of anyone who would make a good member of your group and might have a need for a loan. Prosper makes this easy by allowing you to invite people directly through their email system, and providing a shortcut link that you can put in your emails and even on your personal web site. Learn more about inviting new group members.

Joining a Group

How do I join a group?

Once you find a group you'd like to join, click "Join this group" on their group home page.

If you are not registered with Prosper, you will be asked to fill out a quick registration form. Registration is free.

Once registered, you will send a short note requesting membership to the group's leader. Along with your note, we will include your name, email address, and telephone number, in case the group leader wants to contact you to discuss your request. Share as much as you feel comfortable with. The group leader should get back to you within seven days about the status of your membership request. You can withdraw your request to join a group at any time, and request to join another group instead. Once you are a member of the group, you can create your own loan listing as a member of the group.

Do I need to join a group to get a loan?

No. While borrowers aren't required to join a group in order to post listings on Prosper, they are likely to receive more favorable bids as a member of a group with a good reputation. However, if you're not interested in joining a group, you may get a loan on your own. Just sign in and click the "Create a loan listing without joining a group" link on the "Your Account, Get Started" page.

Can I join more than one group at a time?

No. It is important that your reputation be tied to, and in the hands of, one group and one group leader only while your loan is active.

Can I leave my group?

You can leave your group as long as you don't have an active listing or loan. In that case, just go to "Your Account > Group", and click "Leave group".

If you have an active listing or loan, you will not be able to leave your group until the listing is withdrawn or expires (without becoming a loan), or until your loan is paid in full.

What's next? After being accepted into a group, you should create a listing for a loan.

Group Leader

What is a group leader?

Each group begins with a designated group leader who is responsible for setting up a group home page and inviting members. Prosper has an easy template for setting up a group page. Some group leaders form groups based on their community interests or prior affiliations, such as membership in a club, social organization or religious association. Although group leaders have to do more work than members, there are rewards for the extra effort. Learn more about becoming a group leader.

What are "leader rewards" or "group leader rewards"?

Group leaders can earn group leader rewards (money) in two ways. First, each time a borrower's loan request is matched with a lender and a loan is funded, there is a "match reward". And every time a borrower in the group makes an on-time loan payment, there is a monthly "payment reward." (Try finding a credit card that does this.) The better the group's loan repayment performance, the more the group leader earns, and the better the group's reputation becomes. Learn more about group leader rewards and reward amounts.

What are "shared group leader rewards"?
Instead of being the recipient of the full reward amounts, some group leaders may choose to share their group leader rewards with their group instead. In the case of 100% shared rewards, the group leader will not receive any compensation for on-time payment. Instead, the group leader rewards will be passed on in the form of reduced interest rates on group members' loans. The lower interest rates that group members get when the group leader shares group leader rewards stays the same for the life of the loan, even if the group leader decides later not to share group leader rewards.

What is "listing review"?

Some group leaders will require their borrowers to submit new listings for their review before they are put on the marketplace. If you join a group that requires listing review, when you finish creating your listing, the group leader will have up to 7 days to review your listing and make a decision on the listing:

• If the listing is approved, the listing will become live on the marketplace for the full duration selected (e.g., 7 days).

• If the listing is declined, the listing will be cancelled and you may create a new listing at any time.

When a group leader reviews a listing, he or she has the ability to add a public endorsement to the listing which can be viewed by lenders.

Groups: the strength of community

Groups are the heart of the Prosper marketplace. A group is organized by a single leader and consists of borrowers who all share something in common. Borrowers request membership or are invited to join a group, and since membership is limited, usually have some connection with one or more group members.

What is a group?

The foundation of Prosper is based on groups of borrowers who share a common interest. A group can be large or small, based on a a community organization or nationality or even a common interest, like muscle cars or knitting. Groups can be religious, ethnic, educational… the options are as varied as the members who form them.

Why should borrowers join a group?

Joining a group can boost your reputation as a borrower and be a gateway to lower interest rates from lenders. Although individual borrowers can and do exist, Prosper thinks lenders will have greater confidence in borrowers who belong to a reputable group. That confidence can translate into lower rates on your loan request and lower monthly payments.

Even though you will still individually request the loan and are solely responsible for its payment, your performance as a borrower has an effect on your group. Because lenders can view the aggregate repayment history of groups, lenders' confidence in you and your group depends on your group's repayment performance. Additionally, group leaders with members who successfully repay their loans earn more group leader rewards. A group's reputation is only as strong as its members.

What should borrowers look in a group?
Some borrowers will receive an invitation to join a group, while others will need to find a group to join on their own. Take a look in the different group categories and see if there's a group with whom you share a common interest or sense of community. Be sure to check whether this group repays their loans on time.

If you don't see a group that fits you can form your own group.

Browse all groups. Join a group.

Lend money to other people and earn interest

Lending money to people directly is a great way to earn a fair return. And when you make lots of small loan rather than one or two big ones, you spread your risk out and ensure a more reliable return. It's called diversification and the pro's do it everyday. Here's how it works:

Although we refer to you and other individuals as "lenders", the loans are being made by Prosper and then sold to you, making you a loan purchaser.

Borrow money from people

Borrowers are Prosper members who want to borrow money from other people and get a better deal than the credit card or loan rates offered by banks.

Rates are low because Prosper lenders are people—like you—who want a fair shake from honest borrowers without all the fees and hassles of doing business with big banks.

How it works

Borrowing money through Prosper is fast and easy, and because you're borrowing from people, the rates may be lower than you'd expect!

1. Register with Prosper
Registration is quick and easy. And free!

2. Join a Group
Build lender trust by joining a trusted group.

3. Create a Loan Listing
Say how much you want to borrow, and what your maximum interest rate is.

4. Watch the Bidding
Lenders start bidding immediately - watch the funding go up and the interest rate come down!

5. You Win!
If your terms are met, your loan will be funded directly to your bank account.

6. Easy monthly payments
Your monthly loan payments are withdrawn automatically from your bank account.

Lend. Borrow. Prosper

Prosper, America's first people-to-people lending marketplace, was created to make consumer lending more financially and socially rewarding for everyone.

The way Prosper works is intuitive to people who have used eBay. Instead of listing and bidding on items, people list and bid on loans using Prosper's online auction platform.

People who want to lend set the minimum interest rate they are willing to earn and bid in increments of $50 to $25,000 on loan listings they select. People who lend can easily diversify using "standing orders", which automatically make many small loans to different borrowers.

In addition to criteria commonly used by institutional lenders, such as credit scores, people who lend can consider borrowers' group affiliations. Groups on Prosper are critical to bringing people together for the common goal of borrowing at better rates. Groups earn reputations according to their members' repayment records. Groups with successful repayment histories should attract more lenders offering lower rates.

Borrowers create loan listings for up to $25,000 and set the maximum rate they are willing to pay a lender. Then the auction begins as people who lend bid down the interest rate. Once the auction ends, Prosper takes the bids with the lowest rates and combines them into one simple loan. Prosper handles all on-going loan administration tasks including loan repayment and collections on behalf of the matched borrower and lenders.

Prosper's rigid privacy policy reflects co-founder and Chief Executive Officer Chris Larsen’s longstanding history as an advocate of stringent consumer financial privacy protection laws and practices. Prosper does not sell, rent, or share members' personal information with third party marketers. Prosper members are in control of how much personal information—if any—is revealed on the website and with other members. Prosper's security and identity verification systems are state of the art, and consistent with those used by banks, brokerages and institutional creditors.

Prosper generates revenue by collecting a one-time 1% fee on funded loans from borrowers, and assessing a 0.5% annual loan servicing fee to lenders. Backed by Accel Partners, Benchmark Capital, Fidelity Ventures, and Omidyar Network, Prosper has raised approximately $20 million. Prosper's marketplace platform is patent pending.