When financial disaster hits, it’s good to know that you can rely on lenders as a backup source of income. It only takes a few minutes to fill out a form online. Plus, you could have funds deposited into your bank account in as little as three days. If you find that you need quick funds and need to make a deadline, a personal loan can be a good option.
However, various companies operate throughout the United States. It can be confusing to find one that has flexible interest rates and a decent repayment schedule. While payday loans are useful, some people can’t afford to pay back the money within their next paycheck.
We’ve found one lender to be promising, and that’s Prosper Personal Loans. They offer flexible terms with decent interest rates. So, we’ll review to see if they are a good fit for you in your time of crisis.
A personal loan is where you select an amount of money you’d like to borrow, and you’ll pay it back with interest. Personal advances don’t have an exact payment schedule so that they can be flexible. Different companies provide different terms and fees associated with a loan.
What’s Like Being a Borrower From Prosper Personal Loans?
This company functions the same as any lending company. To get funds, you’ll have to fill out an application. By filling out an application, you’ll get proposed terms, rates, and a repayment schedule.
Once you sign with the proposed rates, then you’ll get the funds deposited into your account. The funds can be used on anything you’d like. However, once they are accepted, then the repayment period will begin.
Is There a Limit to How Much You Can Borrow From the Prosper Personal Loans?
The company can provide you more money than most other lenders. The amount you get funded and approved for will depend on a few factors. The first factor is your monthly income. Secondly, it will depend on what state you reside in.
On average, this company gives out loan amounts up to $40,000. This amount may seem like a lot, but you will be paying interest. The large sum of money is used for more than just emergencies. They are useful for putting a downpayment on a home or even renovating.
Does Prosper Personal Loans Have Any Added Fees or Higher Interest Rates?
Due to the nature of the loans, this company includes high-interest rates. These rates range anywhere from 9.95% to 35.99%. While this percentage doesn’t seem like a lot, it does add up.
A loan for $40,000 with a 35.99% interest adds an extra $14,396 to the total cost of the loan. If you don’t pay that amount off in a year, the interest will keep growing. This can make a massive impact on your financial plans for the next few years.
Aside from that, Prosper Personal Loans also charge an origination fee. An origination fee is an extra charge to set up your account. This fee isn’t expensive, but it does add to the total cost of using this company.
Nonpayment & Late Payment Information at Prosper Personal Loans
If you don’t pay the company or miss a payment, you can expect extra charges. They charge a late fee of $15 for not paying by the due date. Additionally, they may also charge or choose to charge 5% of the total loan amount.
While the 5% doesn’t seem like a lot, it does add up if you miss more than one late payment. We highly suggest that you contact Prosper Personal Loans before you miss a payment. They may be able to extend your payment date and help you avoid fees.
However, if you wait until the last minute, you will get charged the late fees, which will eventually be reported and sent to collections. So, be very careful of the repayment schedule for your loan.
Can I Trust Prosper Personal Loans?
Yes, it is a legitimate company. They have been operating since 2005 and having out loans that equal up to $17 billion. That’s enough loans to provide for over one million United States citizens.
Plus, unlike others, the funds and money don’t come from one steady source. Instead, investors team up with Prosper Loans to help create pros and cons for both borrowers and investors. It’s a win-win situation. Additionally, the company handles all the loan services so that the borrower and investors can sit back and relax.
Step-By-Step Guide to Apply for a Prosper Personal Loan
To get a personal loan from Prosper Personal Loans, you’ll need to fill out an application. The application process only takes 20 minutes, and you can have funds deposited into your account within three days. Here are the steps you need to take for applying;
- Head to the website and click “Check your rate.”
- Type in the amount of money you wish to borrow.
- After that, you’ll need to specify the purpose of your loan.
- Select if you’re filing either joint or alone.
- Next, input your personal information (this will include your name, phone number, email, address, etc.)
- After you’re done, read over their terms and service agreement. Click accept.
- Now, you’ll just have to wait until you’re approved.
- Once approved, you can eSign a contract and expect the funds to be distributed into your account same-day.