1.
You will continue to own the shares that you pledge as collateral throughout the life of your loan. However, you will be required to maintain a cetain loan-to-value ratio or “LTV” at all times. If the value of your pledged shares falls, you may be required to pledge more collateral or pay down a portion of your loan in order maintain the required LTV. If you are unable to maintain the requisite LTV through these means, your pledged shares may be sold and the proceeds applied to your outstanding loan balance. See your loan and pledge documents for more detail.2.
Loans through Prism are not available to residents of the following states:3.
Once verified and approved, loan funds may be sent to your account via the federal Automated Clearinghouse system or ACH. Availability of funds depends on how quickly your bank processes the transaction and can take up to 4 days in some cases.4.
You may not use loan proceeds to pay for postsecondary eductional expenses, or to fund any illegal activity. In addition, loan proceeds may not be used: to purchase, carry, or trade securities; to refinance or repay any margin loan; or to repay any other loan used to purchase securities.
Personal loans made through Prism feature Annual Percentage Rates (“APRs”) of 5% to 29.98%. All loans have an 3% origination fee, which is deducted from the loan proceeds at origination and all loans have a term of 36 months. For example, for a loan of $100,000 with a 36-month term and an APR of 16.38% (which includes an annual interest rate of 15%, a one-time origination fee of 3%, and a one-time Prism platform fee of 5%), you would recieve $97,000 in your account and would owe a total of $145,000 at the end of your 36-month loan term. The APR on your loan may be higher or lower than this example. Actual rates offered depends on the amount and value of your pledged collateral and other factors. Prism is a platform, not a bank.
