• Author: The Loans.pro
  • Date: August 20 2024

In an improving personal finance environment, access to the right loans can make all the difference. Prosper is a popular platform that offers peer-to-peer lending options, but it may not be a good fit for everyone. If you’re considering Prosper’s options, you’re in the right place. This comprehensive guide examines the top 8 loans like Prosper, giving you valuable insight to make informed financial decisions. Each option is evaluated on the basis of its quality, utility, and suitability for various investment needs.

LendingClub

LendingClub is a significant alternative to Prosper, offering personal loans and small business loans. It operates on a Prosper-like peer-to-peer lending platform, connecting borrowers and investors.

Top Features:

  • Loan range: $1,000 to $40,000
  • APR: 6.95% – 35.89%
  • Conditions: 36 or 60 months
  • Credit Score Requirements: Fair to excellent (620+) .

Pros:

  • Flexible loan options: LendingClub offers personal and business loans, catering to a wide range of financial needs.
  • No prepayment penalties: Borrowers can pay off their loans early without paying additional fees.
  • Competitive Benefits: The platform offers competitive interest rates, especially for good borrowers.

Points to consider:

  • Origination Fee: LendingClub charges an origination fee, which can range from 1% to 6% of the loan amount.
  • Credit Score Impact: Although LendingClub meets credit score requirements, higher interest rates may apply to those with lower scores.

Upstart

The startup uses artificial intelligence to offer self-service loans. Upstart aims to provide adequate financing based on a wide range of factors beyond credit score alone.

Top Features:

  • Loan range: $1,000 to $50,000
  • APR: 6.60% – 35.99%
  • Conditions: 36 or 60 months
  • Credit Score Requirements: Fair to excellent (300+) .

Pros:

  • AI-Driven Approval: The upstart uses AI to assess borrowers’ creditworthiness, potentially leading to better rates and approvals.
  • No first payment fees: Like Prosper, Upstart doesn’t charge any first payment penalties.
  • Instant financing: Upstart offers instant financing, with some loans funded as soon as the next business day.

Points to consider:

  • Higher interest rates on lower credit scores: Borrowers with lower credit scores may face higher interest rates.
  • Origination Fee: Upstart charges an origination fee, which varies depending on the amount of the loan and the terms of the loan.

Avant

Avant specializes in personal loans for low-performing borrowers. Avant offers a flexible application process and quick financing.

Top Features:

  • Loan range: $2,000 to $35,000
  • APR: 9.95% – 35.99%
  • Duration: 24 to 60 months
  • Credit Score Requirements: Poor to excellent (600+) .

Pros:

  • Flexible Eligibility: Avant is known for its flexible eligibility requirements, making it easier for those with lower credit scores.
  • Faster approvals: The platform provides faster approvals and funding, often within a day.
  • No hidden fees: Avant offers a transparent payment plan, with no prepayment penalties.

Points to consider:

  • Higher Interest Rates: Focusing on borrowers with lower credit scores, interest rates can be higher compared to other platforms.
  • Origination fees: Avant charges an origination fee, which can affect the total cost of the loan.

Peerform

Peerform is another peer-to-peer lending platform that offers personal loans. It builds relationships between borrowers and investors and provides easy credit management.

Top Features:

  • Loan range: $4,000 to $25,000
  • APR: 5.99% – 29.99%
  • Conditions: 36 or 60 months
  • Credit Score Requirements: Fair to excellent (600+) .

Pros:

  • Competitive Benefits: Peerform offers competitive interest rates, especially for good borrowers.
  • No prepayment penalty: Borrowers can pay off their loans early without additional fees.
  • Seamless application process: The platform offers a seamless application process with fast decision making.

Points to consider:

  • Origination Fee: Peerform charges an origination fee, which can range from 1% to 5% of the loan amount.
  • Credit Score Effect: Higher interest rates can be applied to borrowers with low credit scores.

SoFi

SoFi is a well-established provider of personal loans, student loan refinancing and mortgages. It focuses on providing complete financial services at affordable prices.

Top Features:

  • Loan range: $5,000 to $100,000
  • APR: 7.99% – 23.43%
  • Duration: 24 to 84 months
  • Credit Score Requirements: Good to Excellent (680+) .

Pros:

  • Larger loans: SoFi offers higher loan rates compared to many other options, making it suitable for larger financial needs.
  • No Fees : SoFi does not charge origination fees or down payment penalties.
  • Additional benefits: The platform offers benefits such as unemployment protection and financial planning features.

Points to consider:

  • High credit score requirements: SoFi primarily treats borrowers with good to successful credit scores, which may restrict options for those with lower credit scores.
  • Risk factors: Borrowers with low credit scores may face higher interest rates.

Marcus by Goldman Sachs 

Marcus from Goldman Sachs offers personal loans with a focus on simplicity and transparency. It is known for its customer friendly approach and affordable prices.

Top Features:

  • Loan range: $3,500 to $40,000
  • APR: 6.99% – 24.99%
  • Duration: 36 to 72 months
  • Credit Score Requirements: Good to Excellent (660+) .

Pros:

  • No Fees: Marcus does not charge any fees including origination fees or first payment fees.
  • Flexibility: The platform offers flexible loan facilities to suit financial needs.
  • Transparency: Marcus provides transparency on loan terms and pricing.

Points to consider:

  • High Credit Requirements: Marcus requires a good to excellent credit score for a good loan, which may not be available to all borrowers.
  • Limited loan applications: There may be restrictions on the types of loans a platform can offer compared to other platforms.

OneMain Financial

OneMain Financial specializes in personal loans and offers a variety of options for borrowers with varying credit profiles. It is known for its network of personal service and local branches.

Top Features:

  • Loan range: $1,500 to $20,000
  • APR: 18.00% – 35.99%
  • Duration: 24 to 60 months
  • Credit Score Requirements: Poor to excellent (300+) .

Pros:

  • Flexible eligibility: OneMain Financial offers borrowers a wide range of credit scores, including those with poor credit.
  • Local branches: The platform has virtual branches where borrowers can personally discuss options.
  • Personalized Service : OneMain Financial offers personalized loan options based on an individual’s financial situation.

Points to consider:

  • Higher interest rates: Interest rates can be higher due to its focus on borrowers with lower credit scores.
  • Origination fees: The platform charges an origination fee, which can affect the total cost of the loan.

Funding Circle

Funding Circle is a peer-to-peer lending platform focused on small business loans. It connects businesses with investors and provides competitive lending options.

Top Features:

  • Loan range: $25,000 to $500,000
  • APR: 4.99% – 22.99%
  • Conditions: 6 months to 5 years
  • Credit Score Requirements: Fair to excellent (620+) .

Pros:

  • Larger loans: The banking group offers larger loans, making them suitable for businesses that need larger financing needs.
  • Competitive rates: The platform offers competitive interest rates based on credit profile and the financial health of the business.
  • No down payment: Businesses can pay off their loans quickly without any additional fees.

Points to consider:

  • Professional perspective: The finance team primarily serves businesses rather than individual borrowers, which can restrict options for individual borrowers.
  • Credit quality and financial health: Platform rates and terms are influenced by the credit quality and overall financial health of the business.

Final Words

When applying for a loan like Prosper, it’s important to consider a variety of factors such as loan amount, interest rate, terms and eligibility requirements. The eight strategies listed above offer a variety of options to fit different financial needs, whether you’re applying for a personal or business loan. Each platform has its own benefits and considerations, so it’s important to evaluate them based on your specific needs and budget. By doing so, you can find the best loan option that meets your goals and provides you with a positive borrowing experience.