There is no fee to sign up to be an investor on Prosper’s marketplace.
Investors pay an annual loan servicing fee, currently set at 1% per annum of the outstanding principal balance of the corresponding borrower loan prior to applying the borrower’s current payment. The loan servicing fee accrues daily, the same way that regular interest accrues on the corresponding borrower loan. It is calculated by multiplying (a)the outstanding principal of the loan prior to applying the current payment, by (b) the annual loan servicing fee divided by 365, and then multiplied by the number of days since the borrower’s last payment.
In the event that a borrower loan becomes past due, Prosper may collect on the loan directly or refer it to a third-party servicer or a collection agency. Our in-house collections department and any third-party servicer or collection agency will be compensated by keeping a portion of the payments collected based on a predetermined fee schedule. No fee will be collected if funds are not recovered.