New Borrowing Terms from Prosper

Prosper has announced the ability to set a national maximum lender rate at 36% (well above the previous maximum rate in some states which was set at 6% or lower) by using WebBank. Prosper has this to say about their loan origination program:

"All loans originated through the Prosper marketplace are made by WebBank, a Utah-chartered Industrial Bank. Prosper provides services to WebBank in connection with the origination of such loans and Prosper services loans made to Prosper borrowers on behalf of registered Prosper lenders who purchase such loans. All loans are fixed rate, unsecured, 3-year, fully amortizing with simple interest."

The new Prosper Borrowing Terms are listed below:

Loan amount:
$1,000 - $25,000

Maximum interest rate:
36%*

Closing fee:
($25 minimum)

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

Late fee:
(15-day grace period)

The greater of 5.00% of the unpaidinstallment amount, or $15**

Failed payment fee:
$15

* Texas residents are limited to 10% interest for personal use loans and 18% for business use loans. South Dakota residents cannot borrow at this time.
** Texas residents' late fee is 5% of the unpaid installment amount.