Prosper marketplace is a peer-to-peer lending marketplace that offers multiple loans like personal loans, home improvement, and business loans. You can invest in personal loans and start earning a passive income. You can invest as little as $25 and earn an annual average income of 5.7%. You can diversify your portfolio by investing in a variety of loans. Prosper marketplace has an auto-invest function that can help you pre-set target and earn interest automatically.
Prosper Marketplace Review: Quick Facts
- Prosper is a peer-to-peer lending marketplace that offers different kinds of loans like personal loans, business loans, and home improvement.
- You can invest a minimum of $25 and start earning an average annual interest rate of 5.7%.
- Prosper has investment features like an auto-invest tool that can help you save time selecting loans to invest in. It also has a mobile app available for Android and iOS users.
- 1 Who Can Invest in Prosper Marketplace?
- 2 How Prosper Marketplace Works
- 3 How to Invest in Prosper Marketplace
- 4 Prosper Marketplace Features
- 5 Prosper Fees
- 6 Prosper Supported Countries
- 7 Prosper Customer Support
- 8 Is It Safe to Invest in Prosper Marketplace?
- 9 Pros and Cons of Prosper
- 10 Prosper Alternatives
- 11 Summary of Prosper Marketplace
Who Can Invest in Prosper Marketplace?
To invest in Prosper Marketplace, you need to meet the following requirements:
- Be a permanent resident of the United States
- Be at least 18 years old
- Have a social security number or Taxpayer Identification Number
- Have a checking or a savings account
How Prosper Marketplace Works
Prosper is a peer-to-peer lending marketplace that offers loans to borrowers. Investors can lend money to borrowers through Prosper and start earning interest of 5.7%. The borrower makes a loan application and then Prosper Marketplace reviews the loan application by checking the borrower’s credit worthiness. If the lender meets the qualification, Prosper Marketplace connects him with an investor that lends him or her the cash.
Borrowers can apply for loans between $2,000 and $40,000. Then investors can invest small portions in different loans. Investors will be earning interest as the borrowers continue to make monthly payments. To qualify for a loan, the borrower needs to have a credit score of at least 640. They also need to provide bank statements.
How to Invest in Prosper Marketplace
To invest in Prosper marketplace, you need to follow these simple steps:
- Open an account. You need to sign up on the Prosper website to start investing. You need to provide your name, email address, and contact details.
- Fund your account. You then need to fund your Prosper account using a bank transfer, or credit card transfer.
- Select a personal loan to invest in. You need to select an individual loan to invest in. You can do so manually or using an auto-invest feature.
- Start earning. Once you have selected a loan to invest in, Prosper will deposit monthly payments to your Prosper account. You will be earning a 5.7% annual interest rate.
Prosper Marketplace Features
Prosper Marketplace has the following features that are accessible by investors:
Prosper Mobile App
Prosper has a mobile app available for iOS and Android users. You can download the app and use it to manage your account from a mobile device. You can adjust your investment portfolio, and transfer and allocate funds. You can also set up a portfolio, add cash to Prosper’s investment account, monitor and manage the portfolio through the app.
Prosper Auto Invest
Prosper has an auto-invest feature that automatically invests the available funds based on the pre-set parameters. To use the auto-invest feature on Prosper, you don’t need minimum account requirements nor will be charged any fees. You can set a parameter to select loans to invest in. when there is a loan request that meets the preset parameters, the auto-invest feature places orders for new listings.
You can expect the following fees when using Prosper:
- Loan servicing fee: 1% per year
- Collection agency fee for delayed payments: 25% of the amount collected
Prosper Supported Countries
To invest in Prosper, you must be a permanent resident of the United States. You must also have a social security number, Taxpayer Identification Number, and a checking or savings account.
Prosper Customer Support
You can contact Prosper customer support by phone: at 866-615-6319 or by email: at email@example.com. You can call them between 9 am and 5 pm on weekdays and between 9 am and 5:30 pm on weekends.
Is It Safe to Invest in Prosper Marketplace?
Prosper is a safe and secure investment platform. It is licensed and regulated in the United States. Also, the cash balance in your Prosper Investment account is FDIC insured by Wells Fargo Bank, N.A. however, it is worth noting that funds lost due to a borrower’s default or poor Note performance are not FDIC insured.
Prosper has 4.7 ratings on Trustpilot. Many people like the platform since it is easy and quick to invest in it. Also, many investors like the platform for its great user experience.
Pros and Cons of Prosper
- Accepts credit scores of 640
- Low origination fees of between 2.4% and 5%
- Has auto-invest feature
- Low returns of 5.7%
- Unsecured loans
- Not available in all states in the U.S
The following are alternatives to Prosper Marketplace:
Summary of Prosper Marketplace
Prosper marketplace is an investment platform where investors can earn an average annual interest rate of 5.7%. You need to be a permanent resident of the U.S to invest in it. Borrowers need to have a minimum credit score of 640 to qualify for a loan. You can save time by using the auto-invest feature to find loans to invest in.