SoFi vs. Prosper Personal Loans: Which One Is Better for You?

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SoFi and Prosper are leading online lenders that offer personal loans fast and with competitive rates.

But when it comes to SoFi vs. Prosper personal loans, is one company better than the other? On the whole, neither lender comes out as the clear winner — the answer depends on your needs as a borrower.

To help you choose, below is a full comparison of SoFi and Prosper personal loans. Read on to learn which lender is right for you.

SoFi vs. Prosper personal loans overview

Both SoFi and Prosper offer personal loans, but they do it in different ways.

SoFi is a direct lender, with its loans originated by SoFi Lending Corp. Prosper is a peer-to-peer lender, meaning your loan typically will come from individual investors.

As a borrower, your experience with both companies won’t be much different. But it’s useful to understand how the two lenders operate.

The chart below takes a close look at the rates and terms on SoFi and Prosper personal loans. Check them out before we take a deeper dive into what these differences mean for you.

The rates and terms for Prosper were as of July 12, 2018. For the latest information, go to Prosper.

SoFi personal loans Prosper personal loans
Loan amount $5,000 – $100,000 $2,000 – $40,000
APR range 6.26% – 14.87% 6.95% – 35.99%
Repayment terms 3, 5, or 7 years 3 or 5 years
Rate type Fixed or variable, depending on where you live Fixed
Origination fee 0% 2.41% – 5%
Allows joint applications Yes, if you and your cosigner share the same address No
Instant pre-qualification Yes Yes
Eligibility requirements Must have sufficient income or offer of employment to start within 90 days; other requirements are not disclosed Minimum FICO score of 640; debt-to-income ratio below 50%; no bankruptcies within last 12 months
Residency requirements Lends everywhere except in Mississippi N/A
Extra benefits Unemployment protection None

There are significant differences between the personal loan products of SoFi and Prosper, so read on to consider which one could work better with your finances.

Choose SoFi if you need a large personal loan

One of the biggest differences when comparing SoFi-versus-Prosper personal loans is their borrowing limits. If you find yourself in any of the following situations, SoFi could be the superior choice.

1. You need to borrow more than $40,000

Unlike Prosper, which has a lending limit of $40,000, SoFi lets you take a personal loan of up to $100,000. This high limit could be helpful if you’re consolidating a large amount of debt or undertaking a major home renovation project.

Online lenders typically don’t offer such large loans, so SoFi is unique in its flexibility. Keep in mind that SoFi’s minimum loan amount is $5,000, so you don’t have as many options for borrowing a small amount of money.

2. You have strong credit and can qualify for low rates

SoFi doesn’t disclose the credit score you need to qualify for one of its personal loans, but it seems that the lender looks for good to excellent credit. Considering that it offers competitive rates ranging from 6.26% to 14.87%, SoFi is looking for creditworthy borrowers with the means to pay back the loan.

If your credit isn’t up to scratch, you also can apply with a creditworthy cosigner, such as a spouse or parent you live with. Your cosigner’s credentials could boost your application and help you snag low rates. Make sure you’re comfortable sharing debt with the cosigner, and that you both have a clear sense of who is responsible for paying back the loan.

3. You’re looking for a long repayment term

SoFi provides long repayment terms. The terms offered by some other personal loan lenders such as Upstart or Payoff max out at five years, but SoFi lets you choose a term of up to seven years.

The longer term could give you breathing room if you need extra time to pay back your loan, and it could lower your monthly payments. But you don’t have to choose such a long term.

Plus, you can pay the loan back sooner. There’s no penalty for prepayment, and you’ll save a lot of money on interest changes as a result.

4. You want the assurance of unemployment protection

SoFi is unique in its unemployment protection benefit for personal loan borrowers. If you lose your job, SoFi will pause your payments in three-month increments for up to a year.

To qualify for this perk, you must apply for unemployment benefits and work with SoFi’s career coaches to find a new job.

This benefit could be a huge help in case you lose your income. Instead of worrying about your loan becoming delinquent, you can pause payments until you’re back on your feet.

Visit SoFi

Choose Prosper if you don’t have excellent credit

Even if you have a fair credit score, you could qualify for a personal loan from Prosper. According to Experian, credit scores are organized into the following tiers:

  • Fair credit scores are between 580 and 669.
  • Good credit scores are between 670 and 739.
  • Excellent credit scores are between 740 and 799.
  • Exceptional credit scores are between 800 and 850.

If any of the following scenarios apply to you, Prosper might be your preferred lender.

1. Your credit score is about 640

Like other lenders, Prosper offers the lowest rates to borrowers with strong credit scores. But it says you can qualify for a loan even with a fair credit score of at least 640.

So if you don’t have excellent credit, Prosper might work with you while other lenders might not. However, a low credit score could leave you with high rates, so make sure you understand the long-term costs of borrowing before signing on the dotted line.

2. You’re looking for a personal loan of under $5,000

Prosper doesn’t issue large personal loans like SoFi does; its loans max out at $40,000. But Prosper has lower borrowing limits, allowing you to get a loan that’s as low as $2,000.

This might be useful if you’re consolidating a small amount of debt or funding a relatively minor personal expense. You don’t want to take on more debt than you need.

If you’re in the market for a small loan, Prosper could be a better choice than SoFi.

3. You don’t plan to apply with a cosigner

Prosper offers low rates on its personal loans starting at 6.95% APR. But since it doesn’t allow you to apply with a cosigner, you’ll need to prove you’re a creditworthy borrower all on your own.

To qualify for the lowest rates, you’ll need a strong credit score and a steady income. Fortunately, Prosper and SoFi offer an instant rate quote on their websites, so you can compare offers from both lenders.

If you like the details of either offer, you can choose the lender with the lower rates.

Visit Prosper

SoFi vs. Prosper personal loans: Which should you choose?

Ultimately, you should choose the lender that offers lower rates and fees, as well as the best repayment term.

SoFi could be the winner if you need a large loan and up to seven years to pay it back. The company’s unemployment protection benefit also might give you peace of mind.

Prosper could be a better choice if you want to borrow less than $5,000. Plus, its credit score requirements might be less strict than SoFi’s, making it easier to qualify for a Proper loan.

Whichever lender you choose, make sure you have a plan for repayment. Our personal loan calculator can help you refine your plan and understand long-term costs. Play around with different loan amounts and repayment terms so you can find the right balance for your wallet.

Note: Student Loan Hero has independently collected the above information related to Prosper personal loans. Prosper has neither provided nor reviewed the information shared in this article.

Interested in a personal loan?

Here are the top personal loan lenders of 2018!
LenderAPR RangeLoan Amount 
1 Includes AutoPay discount. Important Disclosures for SoFi.

SoFi Disclosures

  1. Personal Loans: Fixed rates from 6.990% APR to 14.865% APR (with AutoPay). Variable rates from 6.255% APR to 12.555% APR (with AutoPay). SoFi rate ranges are current as of September 1, 2018 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. See APR examples and terms. Interest rates on variable rate loans are capped at 14.95%. Lowest variable rate of 6.255% APR assumes current index rate derived from the 1-month LIBOR of 2.08% plus 4.425% margin minus 0.25% AutoPay discount. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.

    To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull.See Consumer Licenses.
  2. Minimum Credit Score: Not all applicants who meet SoFi’s minimum credit score requirements are approved for a personal loan. In addition to meeting SoFi’s minimum eligibility criteria, applicants must also meet other credit and underwriting requirements to qualify.
  3. SoFi Personal Loans are not available to residents of MS. Maximum interest rate on loans for residents of AK and WY is 9.99% APR, for residents of IL with loans over $40,000 is 8.99% APR, for residents of TX is 9.99% APR on terms greater than 5 years, for residents of CO, CT, HI, VA, SC is 11.99% APR, and for residents of ME is 12.24% APR. Personal loans not available to residents of MI who already have a student loan with SoFi. Personal Loans minimum loan amount is $5,000. Residents of AZ, MA, and NH have a minimum loan amount of $10,001. Residents of KY have a minimum loan amount of $15,001. Residents of PA have a minimum loan amount of $25,001. Variable rates not available to residents of AK, TX, VA, WY, or for residents of IL for loans greater than $40,000.
  4. Terms and Conditions Apply: SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (

2 Includes AutoPay discount. Important Disclosures for Payoff.

Payoff Disclosures

  1. All loans are subject to credit review and approval. Your actual rate depends upon credit score, loan amount, loan term, credit usage and history. Currently loans are not offered in: MA, MS, NE, NV, OH, and WV.

3 Important Disclosures for FreedomPlus.

FreedomPlus Disclosures

  1. All loans available through are made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. All loan and rate terms are subject to eligibility restrictions, application review, credit score, loan amount, loan term, lender approval, and credit usage and history. Eligibility for a loan is not guaranteed. Loans are not available to residents of all states – please call a FreedomPlus representative for further details. The following limitations, in addition to others, shall apply: FreedomPlus does not arrange loans in: (i) Arizona under $10,500; (ii) Massachusetts under $6,500, (iii) Ohio under $5,500, and (iv) Georgia under $3,500. Repayment periods range from 24 to 60 months. The range of APRs on loans made available through FreedomPlus is 4.99% to a maximum of 29.99%. APR. The APR calculation includes all applicable fees, including the loan origination fee. For Example, a four year $20,000 loan with an interest rate of 15.49% and corresponding APR of 18.34% would have an estimated monthly payment of $561.60 and a total cost payable of $7,948.13. To qualify for a 4.99% APR loan, a borrower will need excellent credit on a loan of $15,000 with a term of 24 months, and qualify for at least two of the following discounts: (1) add a co-borrower who has sufficient income; (2) use at least fifty percent of the loan proceeds to directly pay off existing debt; or (3) show proof of having at least forty-thousand dollars in retirement savings – contact FreedomPlus for further details.

4 Important Disclosures for Citizens Bank.

Citizens Bank Disclosures

  1. Personal Loan Rate DisclosureFixed interest rates from 6.49% – 19.49% (6.49% – 19.49% APR) based on applicable terms. Lowest rates range from 5.99%-18.99% (5.99%-18.99% APR), are for eligible applicants, require a 3-year repayment term, and include our Loyalty and Automatic Payment Discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.
  2. Loyalty Discount: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower has a qualifying account in existence with us at the time the borrower has submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, student loans or other personal loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI and VT. This discount will be reflected in the interest rate and Annual Percentage Rate (APR) disclosed in the Truth-In-Lending Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan, and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan.
  3. Automatic Payment Discount: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their Citizens Bank Personal Loan during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account two or more times within any 12-month period, the borrower will no longer be eligible for this discount.

5 Important Disclosures for LendingPoint.

LendingPoint Disclosures

  • Loan approval is not guaranteed. Actual loan offers and loan amounts, terms and annual percentage rates (“APR”) may vary based upon LendingPoint’s proprietary scoring and underwriting system’s review of your credit, financial condition, other factors, and supporting documents or information you provide. Origination or other fees from 0% to 6% may apply depending upon your state of residence. Upon LendingPoint’s final underwriting approval to fund a loan, said funds are often sent via ACH the next non-holiday business day. LendingPoint makes loan offers from $2,000 to $25,000, at rates ranging from a low of 15.49% APR to a high of 34.49% APR, with terms from 24 to 48 months. The loan offer(s) shown reflect a 28 day payment cycle which is being offered as a courtesy as many of our customers are paid on a biweekly schedule and thus this may better align the loan payment dates with your actual income receipt schedule.

6 Important Disclosures for LendingClub.

LendingClub Disclosures

All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage & history. The APR ranges from 6.16% to 35.89%. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at time of application. The origination fee ranges from 1% to 6% and the average origination fee is 5.49% as of Q1 2017. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the website. All loans via LendingClub have a minimum repayment term of 36 months or longer.

7 Important Disclosures for Earnest.

Earnest Disclosures

  1. Earnest does not lend in Alabama, Delaware, Kentucky, Nevada, or Rhode Island.

8 Important Disclosures for Avant.

Avant Disclosures

* The actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. Funds are generally deposited via ACH for delivery next business day if approved by 4:30pm CT Monday-Friday. Avant branded credit products are issued by WebBank, member FDIC.

** Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33

* Important Disclosures for Upgrade Bank.

Upgrade Bank Disclosures

* Your loan terms are not guaranteed and are subject to our verification and review process. You may be asked to provide additional documents to enable us to verify your income and your identity. This rate includes an Autopay APR reduction of 0.5%. By enrolling in Autopay your payments will be automatically deducted from you bank account. Selecting Autopay is optional. Annual Percentage Rate is inclusive of a loan origination fee, which is deducted from the loan proceeds. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. All loans made by WebBank, member FDIC. Please refer to Upgrade’s Terms of Use and Borrower Agreement for all terms, conditions and requirements.

** Accept your loan offer and your funds will be sent to your bank via ACH within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes this transaction. From the time of approval, funds should be available within four (4) business days.

7.73% – 29.99%$1,000 - $50,000

Visit Upstart

6.26% – 14.87%1$5,000 - $100,000

Visit SoFi

6.99% – 35.97%*$1,000 - $50,000

Visit Upgrade

5.99% – 24.99%2$5,000 - $35,000

Visit Payoff

4.99% – 29.99%3$10,000 - $35,000

Visit FreedomPlus

5.99% – 18.99%4$5,000 - $50,000

Visit Citizens

15.49% – 34.49%5$2,000 - $25,000

Visit LendingPoint

6.16% – 35.89%6$1,000 - $40,000

Visit LendingClub

6.99% – 18.24%7$5,000 - $75,000

Visit Earnest

9.95% – 35.99%8$2,000 - $35,000

Visit Avant

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.

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