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.