Prosper personal loan review: Co-borrowers can apply for personal loans up to $50,000 with this lender

Whether you've got a large home renovation plan on your horizon, or life has surprised you with unexpected debt, Prosper offers personal loans to help you out in a pinch.

With the possibility of next-day funding and loan amounts between $2,000 and $50,000, Prosper personal loans could act as an alternative to using your credit card when you find yourself tight on cash.

Select reviewed dozens of personal loans and named Prosper as one of the best loans for co-borrowers. While you can't apply with a co-signer (someone who promises to pay for you in case you can't afford your payments), Prosper does accept joint applications in which two individuals are evaluated together for a loan and share equal responsibility for the payments.

Ahead, we review Prosper personal loans, taking into consideration APR, perks, fees, loan amounts and term lengths. (Read more about our methodology below.)

• APR
• Perks
• Fees
• Loan amount
• Term length
• Bottom line

APR for Prosper personal loans ranges from 6.99% to 35.99%. Origination fees are between 1% to 5% and deducted from loan proceeds.

Compared to other lenders on our best debt consolidation loans list, APR is about on-par with industry norms, but not as low as some. LightStream, for instance, offers lower rates ranging from (7.49% - 25.49% * when you sign up for autopay (plus there are no origination fees). At the time of writing, the average two-year personal loan interest rate is 9.46%, according to the Fed.

Final APR is based on your loan application. Factors like credit score, income, loan amount and loan term will be considered.

The perks of a Prosper loan include:

• Co-borrowers may apply
• Repeat borrowers can sometimes qualify for APR discounts
• There's an option to change your payment date according to when works best for you
• No prepayment penalty if you choose to pay your loan back early

Perhaps the most significant draw of a Prosper loan is that co-borrowers may submit a joint application. That's not the case for all loans. SoFi loans consider DACA recipients who apply with a creditworthy co-borrower who is a U.S. citizen/permanent resident. But many other lenders, such as LendingPoint, do not accept co-borrowers and/or co-signers.

Prosper loans come with an origination fee of 1% to 5% (deducted from the total loan amount). It's obviously best to avoid origination fees when possible. With a good or excellent credit score, you're more likely to qualify for loans that come without this added cost. None of the lenders on our best personal loans list charge borrowers an upfront fee for processing your loan.

Late fees will cost you 5% of the monthly payment amount or $15, whichever is greater, but you do get a 15-day grace period to pay your bill.

Prosper offers loans ranging from $2,000 to $50,000. Funds can be deposited into your bank account as early as the next business day following your acceptance of the loan offer, completion of all necessary verification steps and final approval. (This is also dependent on your bank's ability to quickly process the transaction.)

Prosper term lengths are from two to five years. A term length refers to the lifetime of the loan during which borrowers make monthly installment payments until it is entirely paid off. Shorter term lengths often have more aggressive monthly payments, since the borrower is paying off the loan in less time. However, longer term lengths might come with a higher APR, since lenders factor in risk when determining how much to charge you in interest.

Prosper personal loans are a wise choice for individuals or co-borrowers in need of fast cash for large expenses, debt consolidation and more.

Those interested in submitting a joint loan application may want to consider PenFed Personal Loans, which also allow co-borrowers but offer smaller loans (minimum of $600).

If you are looking for a larger loan, SoFi Personal Loans offer qualified borrowers loan amounts up to $100,000.

To determine which personal loans are the best, CNBC Select analyzed dozens of U.S. personal loans offered by both online and brick-and-mortar banks, including large credit unions, that come with fixed-rate APRs and flexible loan amounts and terms to suit an array of financing needs. When possible we chose loans with no origination or sign-up fees, but we also included options for borrowers with lower credit scores on this list. Some of those options have origination fees.

When narrowing down and ranking the best personal loans, we focused on the following features:

• Fixed-rate APR: Variable rates can go up and down over the lifetime of your loan. With a fixed rate APR, you lock in an interest rate for the duration of the loan's term, which means your monthly payment won't vary, making your budget easier to plan.
• Flexible minimum and maximum loan amounts/terms: Each lender provides a variety of financing options that you can customize based on your monthly budget and how long you need to pay back your loan.
• No early payoff penalties: The lenders on our list do not charge borrowers for paying off loans early.
• Streamlined application process: We considered whether lenders offered same-day approval decisions and a fast online application process. 
• Customer support: Every loan on our list provides customer service available via telephone, email or secure online messaging. We also opted for lenders with an online resource hub or advice center to help you educate yourself about the personal loan process and your finances.
• Fund disbursement: The loans on our list deliver funds promptly through either electronic wire transfer to your checking account or in the form of a paper check. Some lenders (which we noted) offer the ability to pay your creditors directly.
• Autopay discounts: We noted the lenders that reward you for enrolling in autopay by lowering your APR by 0.25% to 0.5%.
• Creditor payment limits and loan sizes: The above lenders provide loans in an array of sizes, from $500 to $100,000. Each lender advertises its respective payment limits and loan sizes, and completing a preapproval process can give you an idea of what your interest rate and monthly payment would be for such an amount.

After reviewing the above features, we sorted our recommendations by best for overall financing needs, debt consolidation and refinancing, small loans and next-day funding.

Note that the rates and fee structures advertised for personal loans are subject to fluctuate in accordance with the Fed rate. However, once you accept your loan agreement, a fixed-rate APR will guarantee interest rate and monthly payment will remain consistent throughout the entire term of the loan. Your APR, monthly payment and loan amount depend on your credit history and creditworthiness. To take out a loan, lenders will conduct a hard credit inquiry and request a full application, which could require proof of income, identity verification, proof of address and more. 

*Your LightStream loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 7.99% APR with a term of 3 years would result in 36 monthly payments of $313.32.