When you invest in a personal loan with Prosper Investments, you will be able to earn estimated returns of 6.9% on average. On top of that, you will be able to diversify your portfolio beyond stocks and bonds with the minimum to invest starting at a $25 deposit (I recommend at least $2,500 minimum, however) and a $25 minimum per note. Prosper’s risk model has come a long way since then, however, we do advise that you carefully watch your notes as they may carry a slightly higher APR and risk.
Editor’s Note: Investors in the District of Columbia and all states except Iowa, Maine, North Dakota, Pennsylvania and Vermont are eligible to use Prosper.
Prosper Investment Loan Account Summary:
- Sign Up Now
- Account Type: Individual Retirement Account (IRA)
- Availability: Nationwide
- Monthly Fee: $0
- Expiration Date: None
- Online Trades: $2.50 per trade
- Hard Inquiry: Unknown
- Additional Requirements: None
- Early Termination Fee: Unknown
Prosper Investment Account Features:
- Quick Invest — Their automated Quick Invest is a nice feature, though personally I don’t think I’ll invest via this method. In my opinion, you should do this method only if you have six figures to invest and don’t have the time to manually check every note. It certainly keeps your money fully invested.
- Great Loan Profile — The borrower profile is very detailed. In fact, it has much more information than Lending Club.
- Better Search Filters — The additional search criteria allow you to find loans that meet your exact criteria. This is much better than Lending Club’s search, which still has a limited amount of filtering options.
- Previous Prosper Loan History — If the borrower previously used Prosper, their loan history will show up. Anyone with a previous Prosper history in good standing is statistically much less likely to default.
- Smaller Amount for Diversification — According to Prosper, you need only 100 notes (or $2,500) to be properly diversified.
- No Fixed Increments to Invest — Notes require at least $25 to invest but can be any amount past this minimum, unlike Lending Club in which you invest in $25 increments.
Conclusion:
When you open a prosper personal investment loan, you will be able to take advantage of up to 6.9% on estimated returns. With quick investing tools, a very detailed loan borrower profile, and no fixed increments are necessary to invest. This makes Prosper a less hassle P2P to deal with. On top of that, you only need 100 notes to be properly diversified with each note requiring at least $25 to invest. Some key things to be aware of is that Prosper is limited to eligible states with also approval being in consideration of income and net worth. See our full list of broker bonuses!