Does Prosper require collateral?

Are you considering taking out a loan from Prosper, but are unsure about whether they require collateral? Well, you're not alone! Many people have the same question when it comes to Prosper and other peer-to-peer lending platforms. Collateral is an asset that a borrower agrees to put up as security for a loan. If the borrower defaults on the loan, the lender can then seize the collateral to recover their losses. So, does Prosper require collateral? The answer is no. Prosper is a peer-to-peer lending platform that connects borrowers with investors, and they do not require borrowers to put up any collateral to secure their loans. However, keep in mind that Prosper does have certain credit requirements that borrowers must meet in order to qualify for a loan. They use a variety of factors, such as credit score and debt-to-income ratio, to determine a borrower's eligibility. If you're interested in taking out a loan from Prosper, it's important to carefully consider your financial situation and ensure that you can afford to make the payments on the loan. While Prosper does not require collateral, defaulting on a loan can still have serious consequences, including damage to your credit score and potential legal action.