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Prosper

$25 consumer-loan notes, no accreditation, 20-year P2P lending track record

Rates verified October 24, 2026View platform

The Bottom Line

Minimum investment
$25 (verified Oct 24, 2026). All rates and fees

Key facts

  • Reported return: 5.2-5.3%
  • Accreditation: Not required
  • Liquidity: None

Pros

  • 20-year track record through multiple credit cycles
  • Trivial $25 minimum
  • Genuine borrower-payment-dependent yield

Cons

  • Returns now barely above T-bills for unsecured consumer risk
  • Notes are unguaranteed obligations of Prosper Funding; a Prosper Funding bankruptcy could delay or reduce payments
  • Zero liquidity; no secondary market since 2016
  • Retail channel is only ~7% of originations

At a glance

Rates verified October 24, 2026
Minimum investment
$25
Accreditation
Not required
Fees
1% annual servicing fee on outstanding note principal
Reported return
Platform-reported 5.2-5.3% average historical return (as of 3/31/25)
Liquidity
None; notes amortize over 2-5 year terms, no secondary market since 2016
Founded
2005

Source: prosper.com/invest, read October 24, 2026

Is it worth it?

Platform-reported, not guaranteed: about $530 a year on $10,000 if the 5.3% figure held

A $10,000 stake at the platform-reported 5.3% would generate roughly $530 a year before fees, if that figure held. It is the first figure the platform states (a distribution rate, a target or a past return: read its own wording above), and it is not guaranteed. Fees, defaults and illiquidity reduce it, and platform-reported figures are not audited.

Prosper is a US peer-to-peer consumer-lending marketplace, founded in 2005, where individual investors can buy notes tied to personal loans, with a 20-year dataset across multiple credit cycles. In November 2008 the SEC found that Prosper had offered and sold notes without registering them and ordered it to cease and desist from violating Sections 5(a) and 5(c) of the Securities Act ([SEC order](https://www.sec.gov/files/litigation/admin/2008/33-8984.pdf)); its notes are now offered as SEC-registered securities. The honest question is whether the risk still pays: platform-reported average historical returns of 5.2-5.3% (as of 3/31/25) are now barely above T-bills for unsecured consumer credit. Notes cost $25 each, no accreditation required (state suitability rules apply), with a 1% annual servicing fee on outstanding note principal. Notes amortize over 2-5 year loan terms with zero liquidity; the secondary market closed in 2016. Prosper originated $2.2B in loans in 2024, but only about 7% flowed through the retail note channel. Notes are special, limited obligations of Prosper Funding LLC, paid only from the corresponding borrower payments and not secured, guaranteed, or insured; Prosper's annual report warns that a Prosper Funding bankruptcy could delay or reduce payments to note holders, on top of consumer credit risk ([Prosper 10-K](https://www.sec.gov/Archives/edgar/data/1416265/000141626526000012/prosper-20251231.htm)).
Sourceprosper.com ↗

Key details

$25 notesAuto Invest by risk gradeSEC-registered retail notes program20-year dataset across multiple credit cycles

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Prosper FAQ

What is the minimum investment on Prosper?

$25 per note.

Is accreditation required on Prosper?

No, but state suitability rules apply.

What are the risks of investing in Prosper notes?

You hold unsecured consumer credit with platform-reported historical returns of just 5.2-5.3% (as of 3/31/25), barely above T-bills. Notes are special, limited obligations of Prosper Funding LLC that pay only if the borrower pays, and they are not guaranteed or insured; Prosper's 10-K warns that a Prosper Funding bankruptcy could delay or reduce payments to note holders (Prosper 10-K). There has been no secondary market since 2016: you hold each 2-5 year note to maturity.

Source: prosper.com

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