Prosper
$25 notes, no accreditation: the last surviving US retail P2P consumer lender
Rates verified July 23, 2026View platformTracked since2026
0 reviews trackedThe Bottom Line
Minimum
$25
Biggest pro
20-year track record through multiple credit cycles
Biggest con
Returns now barely above T-bills for unsecured consumer risk
At a glance
Rates verified July 23, 2026- Minimum investment
- $25
- Accreditation
- Not required
- Fees
- 1% annual servicing fee on outstanding note principal
- Target 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
Is it worth it?
~$530 a year on $10,000, if the target holds
A $10,000 stake at the platform-reported 5.3% target would generate roughly $530 a year before fees. Returns are not guaranteed: fees, defaults, and illiquidity reduce this, and platform-reported figures are not audited.
What is Prosper?
Prosper is the last true US retail P2P consumer-lending platform standing: founded in 2005, survivor of the 2008 SEC cease-and-desist and relaunch, with a 20-year dataset across multiple credit cycles. 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 borrower-payment-dependent obligations of Prosper itself, so platform bankruptcy risk sits on top of consumer credit risk.
Pros and cons
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 Prosper's obligations, adding platform bankruptcy risk
- Zero liquidity; no secondary market since 2016
- Retail channel is only ~7% of originations
Key details
$25 notesAuto Invest by risk gradeThe only surviving retail consumer-loan notes program in America20-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 borrower-payment-dependent obligations of Prosper itself, so a Prosper bankruptcy would put note-holders at risk, and there has been no secondary market since 2016: you hold each 2-5 year note to maturity.
Source: prosper.com