Prosper is a peer-to-peer lending platform that offers personal loans to borrowers. The Prosper loan agreement is a legal document that outlines the terms and conditions of the loan. As a borrower, it is important to understand the Prosper loan agreement before signing it.
Prosper Loan Agreement Overview
The Prosper loan agreement is a binding legal contract between Prosper and the borrower. It outlines the terms and conditions of the loan, including the interest rate, monthly payments, and fees. The agreement also includes information on repayment options, late payment fees, and prepayment penalties.
The loan agreement will state the amount of the loan, the interest rate, and the term of the loan. Prosper offers loan amounts up to $40,000, with interest rates ranging from 6.95% to 35.99%. Loan terms can vary from 36 to 60 months.
Repayment Options
Prosper offers a range of repayment options. Borrowers can make monthly payments online or via mail. Payments can be made by ACH or check. Prosper also offers automatic payments, which can be set up via the borrower’s bank account.
Late Payment Fees
If a borrower misses a payment, they may be subject to late payment fees. Prosper charges a fee of $15 or 5% of the monthly payment, whichever is greater. It is important for borrowers to make their payments on time to avoid late payment fees.
Prepayment Penalties
Some loans may have prepayment penalties. This means that if a borrower pays off their loan early, they may be charged a fee. Prosper does not charge prepayment penalties.
Fees
Prosper charges an origination fee on each loan. The fee ranges from 2.41% to 5%, depending on the borrower’s creditworthiness. This fee is deducted from the loan before it is disbursed to the borrower.
In addition to the origination fee, Prosper may charge other fees, such as insufficient funds fees and returned payment fees.
Conclusion
The Prosper loan agreement is a legal document that outlines the terms and conditions of the loan. As a borrower, it is important to understand the terms of the agreement before signing it. Borrowers should carefully review the loan amount, interest rate, and repayment options. They should also be aware of potential fees, such as late payment fees and origination fees. By understanding the Prosper loan agreement, borrowers can make informed decisions about their personal loans.
