If you are a borrower looking to apply for a peer to peer loan then Lending Club vs Prosper is a debate you must have gotten in to by now. These are the two leading loan companies. Both of them are very similar and thus it may be hard to settle the confusion over Lending Club vs Prosper. In this article we will settle the Lending Club vs Prosper debate and according to your needs you can then choose which company will suit you best for taking loans.
Both the companies offer low interest rates on loans that are within the $35,000 range. Another similarity is that if you have a good credit score and an excellent application then you can get a bigger loan with low interest rates. Moreover both the companies ask for a 5% fee for the money you loan. In this article however we will be specifically focusing on the differences between lending club and prosper.
Lending Club vs Prosper; the main differences between the two
The main differences between both the companies are listed below:
- Currently lending club is seen to have lower interest rates then prosper. For a $2000 loan over a time of three years the loan rate for lending club was 6.49% whereas for the same loan and time period Prosper’s interest rate was 8.51%. Hence there is a difference of 2% between the interest rates of both which impacts your finances greatly.
- Lending club also is slightly quicker then Prosper in funding loans. Thus if you want your loan quickly you can apply for lending club.
- For taking loans you need to pay a registration fee which is generally 5% of the loan you are taking. The Lending Club calls this fee the ‘origination fee’ whereas Prosper has named it ‘closing fee’. The difference here is that Prosper charges a lower fee of 5% whereas Lending club charges 6% of the total loan amount. This makes a huge difference when your loans are large.
- Furthermore lending club offers the facility of taking joint loans and they are open in more states of the US then Prosper. Hence more easily available.