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What are loan interest rates and estimated investor returns?

Loan interest rates are set by Prosper and are based on factors including:

  • Prosper Rating
  • Loan term
  • Economic environment
  • Competitive conditions

Rates can change over time. The current interest rates and estimated returns are illustrated in the Prospectus.

*Estimated Return is the difference between the Estimated Effective Yield and the Estimated Loss Rate. Estimated Effective Yield is equal to the borrower interest rate: (i) minus the servicing fee rate, (ii) minus estimated uncollected interest on charge-offs, (iii) plus estimated collected late fees. The Estimated Loss Rate is the estimated principal loss on charge-offs, and is based on the historical performance of Prosper loans. All estimates are based on the historical performance of Prosper loans for borrowers with similar characteristics. The calculations of Estimated Return, Estimated Effective Yield, and Estimated Loss Rate require significant assumptions about the repayment of loans, and investors should make their own judgments with respect to the accuracy of these assumptions. Actual performance may differ from estimated performance.


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