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About Prosper and Getting Loan

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					About Prosper and Getting a Loan
Peer to Peer Lending

In Peer-to-Peer lending, borrowers post loan requests on the Prosper site and these loans are invested in by many lenders.
Thus, a person borrowing $10,000 may have dozens and dozens of lenders investing in the loan. Prosper acts as the platform,
and collects and distributes all the money, though the loans on Prosper's platform are originated by WebBank, an FDIC-insured
Utah Industrial Bank.

Benefits of Prosper Loans for Borrower

     1.   Application is online and takes less than 5 minutes
     2.   Fixed loan rates from 6.59% to 35.84% APR
     3.   Loans are unsecured. No collateral required
     4.   Fixed rate – Interest rate never changes for life of loan
     5.   Multi-year terms
     6.   Easy monthly payments
     7.   Loan sizes from $2,000 to $25,000
     8.   No prepayment penalties
     9.   No upfront fees – Origination fees depend on credit rating of borrower and are taken from the loan proceeds. Our fee
          schedule: http://www.prosper.com/loans/rates-and-fees/.


How Long Goes the Borrowing Process Take?

         5 minutes to get pre-qualified online
         15 minutes to draft the loan listing
         1 -day to 2 weeks for lenders to fully commit to the loan
         24 hours after loan is fully committed and verification documents are received, borrower typically receives funds
         Some borrowers get their funds within 3-4 days of first application
         The avg. borrower has the funds deposited directly into their account within eight days of submitting their application


Listing to a Loan

     1.   A prospective borrower comes to the Prosper site and submits a short application – approximately 15 easy questions
          that take less than 5 minutes to complete. https://www.prosper.com/account/common/register.aspx
     2.   A soft-pull of the person’s credit report (which does NOT ding their credit score) is done along with a risk assessment.
          If, based upon the person's credit history and the risk assessment, the person meets the minimum threshold required
          to list a loan, then an interest rate is assigned to the loan request. This process happens online and is instantaneous.
    3.   The prospective borrower is presented with the interest rate and corresponding monthly payment, plus some
         alternatives for lower rates or lower payments. The prospective borrower chooses a loan option and is then asked to
         complete a loan listing that will appear on the Prosper site telling prospective lender members about the loan.
    4.   The prospective borrower can add a subjective description to the loan listing.
    5.   Finally, the prospective borrower is asked for some banking information, confirms the loan request, and submits the
         loan listing.

Funding a Loan

    1.   Once a loan listing has been submitted and posted to the Prosper site, lenders start investing in the loan in
         increments between $25 and the full loan amount – the loan can be fully committed to by lenders in less than 24
         hours, though it may also take as long as 2 weeks.
    2.   After a listing is created, a card is sent to the prospective borrower in the mail – the prospective borrower needs to
         log into their Prosper account and enter the number from the card. This is done for verification purposes.
    3.   At the same time, an email is sent to the prospective borrower asking for specific loan verification documents. These
         will include Driver’s License, address verification, and a W-2, when applicable. Getting the loan verification
         documents into Prosper quickly often speeds up how fast lenders commit to invest in the loan. Occasionally some
         prospective borrowers may be asked for additional documentation once Prosper receives the first set of verification
         documents.
    4.   Once all verification documents are in and the loan has received sufficient commitments from lenders, the loan will
         be approved and the borrower will typically receive the loan proceeds in their bank account within 48 hours and
         sometimes as few as 24 hours.
    5.   If, however, the loan listing did not receive sufficient commitments from lenders (at least 70% of the loan request if
         the prospective borrower selected partial funding) within 14 days, the listing is cancelled and the loan request is
         denied. At that time, the prospective borrower may elect to create another listing and start again.
    6.   Note that the great majority of prospective borrowers who do their part (by sending in the verification documents)
         AND are who they say they are (address verification, etc.) end up receiving loans through Prosper.


Documents Prospective Borrowers Will Need

Many prospective borrowers will be asked for a government issued ID such as a Driver’s License, utility bill, W-2, paystub,
voided bank check, or bank statement. Some prospective borrowers may be asked for additional documentation. Prosper
does not ask for tax returns. Prosper accepts proof of other steady income such as annuities, pensions, child support or alimony
if the prospective borrower wishes to have such income considered.

It will be important to message upfront that they will have to send some documents to us once they put a listing on the
site. The goal is to effectively communicate as early in the process as possible that they need certain documents available to
provide to Prosper for verification purposes.

More specifically, here is what they need to provide:
1.   Bank acct verification
          a. The easiest thing to do is for them to download a bank statement in PDF format and email it to us at
                approval@prosper.com. The sooner they do this the better, so it would be good to prepare them beforehand to
                be ready with it.
          b. The other choice is a voided check, which they can scan and email to the above address OR fax to us at
                415.869.2877.
2.   Address verification – we send them a postcard with a code that they then fill in on site. Sometimes it takes a few days for
     the card to get to them, so they need to be on the lookout for it and take care of this ASAP once they receive it.
3.   Driver’s license – they can scan and email to us at approval@prosper.com OR fax to us at 415.869.2877.
4.   Income or employment verification – this is typically in the form of a W2 or paystub.


In addition, it is imperative that the information they provide to us is accurate – this includes contact info, address, SSN, annual
income, etc. And their income MUST be personal, NOT household – sometimes people put in household income and then they
are declined when they are unable to verify that it is personal income. Also, we DO NOT accept rental income.

And finally, note that they can always log in to their account to see exactly what their status is and what
documents/information they still need to provide. Or they can call 877-646-2421 to speak to a customer service rep.

Want to Know More?

Prosper has a great FAQ section at http://www.prosper.com/help/borrowing.aspx

				
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posted:9/22/2012
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