Prosper Loans Scam

Does Prosper Loans scam consumers? The answer to that question is no. Prosper Marketplace, the company behind Prosper.com, is a real venture-backed company based out of San Francisco, which has originated more than $200 million in loans to borrowers.

Prosper Loans was founded in 2005 by Chris Larsen, the former CEO of E-Loan. The company has a strong management team, including CIO Joseph Toms, EVP Risk Management Jim Catlin, COO/CFO Kirk  Inglis, General Counsel Sachin Adarkar and EVP Roberto Arnetoli. The company’s management team has an extensive background in the financial industry. Prosper.com has also received tens of millions of dollars in venture capital, from notable firms including Volition Capital, Crosslink Capital, Tomorrow Ventures, Draper Fisher Juvertson, QED Investors, CompuCredit, DAG Ventures and Meritech.

Prosper Loans has issued a total of $275 million in loans to 45,873 borrowers since 2006. The company is not a fly-by-night finance operation that’s out to scam consumers. Prosper Loans is setting up several million dollars in new loans each month and many borrowers have had positive experiences taking out loans from the company. Prosper is different than other finance companies in that a loan that you might take out is funded by an individual investor, rather than through traditional financing sources. This should not concern you though; it only means that you’re likely to get a better interest rate than you would be able to get elsewhere. There is no Prosper Loans Scam.

Prosper Loans offers one year, three year and five year loans to borrowers that have fixed interest rates and are fully amortizing. Like loans from Lending Club, you can take out a loan on Prosper.com for any purpose. Often borrowers on Prosper take out loans to consolidate debt and lower the interest rates that they are paying on their debt. Prosper charges interest rates ranging between 5.65% and 31.77% depending upon your credit score. The only fee that you will have to pay is an origination fee ranging between 0.5% and 4.95% depending on your credit.

According to Prosper’s website, “A new Prosper borrower must be a U.S. resident in a state where Prosper loans are available, and must have a bank account, a Social Security number, and a credit score of at least 640. Prosper uses Experian to obtain credit scores. Depending on their qualifications, approved borrowers can request unsecured loans from $2,000 to $25,000.”

Click here to apply for a loan from Prosper Loans.