Prosper Fees Update

Prosper Borrower Fees

1-3% closing fee

If you are a borrower and your loan is funded, you will be charged a percentage of the amount borrowed or $25, whichever is greater, depending on your credit grade:

AA: 1% closing fee
A - B: 2% closing fee
C - HR: 3% closing fee

For example, if you are a borrower with a B credit grade and you take a loan for $5,000 to help pay for your wedding, you will be charged $100. The 2% is taken from your loan immediately, so in this example your loan is for $5,000 and you'd receive $4,900 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 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 Lender Fees

0%-1% 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. The amount of the servicing fee depends on the borrower's credit grade:

AA: 0% annual loan servicing fee
A - HR: 1% annual loan servicing fee

For example, on a $5,000 A credit grade loan at 10% interest, the servicing fee would be $80.70 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 (if the borrower happens to pay it back in less than 3 years).

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.