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What types of fees are charged on loans and how are they assessed?

Pre-payment fee

 

There is never a fee for making prepayments or paying your loan off early

 

Origination Fee

 

The “Origination Fee” (also called a “Pre-paid Finance Charge”) is a one-time, non-refundable fee to process your loan that is automatically deducted from your loan proceeds before your money is transferred to you. This means that the amount of money that you receive will be the amount you requested minus the Origination Fee. If you need a specific amount of money to pay off a credit card balance or to make a purchase, make sure you ask for enough to cover both the specific amount you need and the Origination Fee

 

The amount you will be charged for the Origination Fee is calculated as a percentage of the amount you borrow (1%-5%, depending on Prosper Rating). Your APR (Annual Percentage Rate) already includes the Origination Fee

 

Check Fee

 

Payments by check may incur a $5 processing charge, which could result in $180 or more in additional costs over the course of your loan. Check payments are applied on the date the check is received and not on the date the check is placed in the mail. This can lead to late fees if the check is not received in a timely manner 

 

Late Fee

 

Your account will be considered delinquent if you do not pay the full amount of your monthly payment on or before your due date. If you have not paid the full amount of your monthly payment within fifteen (15) calendar days after your due date, you will be charged a late fee of $15.00 or 5% of the unpaid monthly payment amount, whichever is greater. You will only be charged one late fee per late payment.

 

If you are charged a late fee and make your regular monthly payment afterwards, you will be current on your loan, but you will have paid off less principal for that month. This may result in greater accrued interest over the term of your loan, and a higher final payment

 

Insufficient Funds Fee

 

If you attempt to make a payment and it fails because there are insufficient funds in your account or because your account cannot be accessed, you will be charged a fee of $15 for each returned or failed payment. If you are charged an insufficient funds fee and successfully make your full monthly payment afterwards, you will be current on your loan, but you will have paid off less principal for that month. This may result in greater accrued interest over the term of your loan, and a higher final payment.

 

Please note: if you fail to successfully make your full monthly payment within 15 calendar days after your due date you may also incur a late fee.

 

Please refer to your Borrower Registration Agreement and Promissory Note (stored in your online account) for more details about fees

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