David Lê, ThinkViet

Who can borrow money on Prosper?

Any U.S. resident with a bank account and a Social Security Number (or Individual Taxpayer ID) can be a Prosper borrower. You’ll first need to be approved by Prosper’s anti-fraud and identity verification system. Borrowers can then request unsecured loans from $1,000 to $25,000 (may vary by state) at rates they select. It doesn’t matter how good or poor your credit rating is, or how high or low your income level, all registered borrowers are allowed to post a listing on Prosper. It is recommended, however, that you join a group to attract a more favorable interest rate for your loan.

You can request 3-year, fully amortized, unsecured loans up to $25,000 (may vary by state). You’ll need to pay off the loan in three years, in set monthly payments. You don’t need any collateral to guarantee the loan, and there are no penalties for paying off your loan early or for making partial prepayments.

How do I request a loan on Prosper?

First, you’ll need to register as a member on Prosper. To do this, go to the page www.prosper.com/prm/choihui, browse the information there, and use the “Free Registration” button. Once on the Prosper home page, go to the “Borrow money” section and click on the “Borrow money now…” link. Or you can just use the “Register Now” button on the right of the page. Fill out the registration form and submit it. Once you are registered, you can look for a group and join it, to improve your chance for getting a better loan interest rate. When you are ready to create a loan listing, click on the “Borrow” tab and then click “Create a new listing now”.

Prosper will then ask for your Social Security Number and a few other personal details so the system can verify your identity and pull your credit score. This will allow Prosper to categorize you into one of eight credit grades. There is no fee for obtaining your credit score and grade. You will also need to provide information about your bank account, where loan proceeds will be automatically deposited if your loan is funded. You can also choose to have your monthly payments automatically deducted from your bank account.

Your loan listing will inform potential lenders about the amount you wish to borrow, the interest rate you are willing to pay, your credit grade, the purpose of your loan, and any other information you care to list, in order to inspire the lenders to start bidding on your loan request. You decide how long your loan request will be posted for bidding. Once done the listing is complete, you can review it, including the estimated Annual Percentage Rate (APR), monthly payment, disclosures, and other legal terms.

If you joined a group that requires listing review, your group leader has up to seven days to approve or decline the loan listing. Once listed, your loan request becomes active on the Prosper marketplace, and you will be able to track it on the “Lend” tab. You can also monitor the bids you are receiving on the bid history page.

Learn more about loan bidding and how your loan may get funded, Bidding on a Loan Listing, read for yourself how this “Choi Hui On The Net” system works. For assistance with getting your first loan request listed on Prosper, you may also join ThinkViet, a new Prosper group created to assist new borrowers just like yourself!

David Le is in charge of marketing and public relations at ThinkViet. He can be reached at david@thinkviet.net.