Prosper is a people-to-people lending marketplace that attempts to make consumer lending more financially and socially rewarding.

Prosper allows people to invest in each other in a way that is financially and socially rewarding. On Prosper, borrowers list loan requests between $2,000 and $25,000 and individual lenders invest as little as $25 in each loan listing they select.

In addition to criteria commonly used by institutional lenders, such as credit scores, people who lend can consider borrowers’ group affiliations. Groups functionality brings people together for the common goal of borrowing at better rates. Groups earn reputations according to their members’ repayment records. Groups with successful repayment histories should attract more lenders offering lower rates.

Prosper generates revenue by collecting a one-time fee of 0.5% to 4.5% on funded loans from borrowers, and assesses a 1.0% annual loan servicing fee to lenders.