SAN FRANCISCO - (Business Wire)Prosper, America’s largest people-to-people lending marketplace, today released results for July 2008. For the first time, the survey includes statistics showing how borrowers who list and get funded in the Prosper marketplace indicate how they plan to use their personal loans. Also noteworthy, the percentage of prime borrowers (borrowers with 720+ credit scores) hit an all time high in July, accounting for 47% of funded loans.
July 2008 Prosper People-to-People Lending Market Survey
Purpose of Personal Loan Listings and Fundings
Borrowers who post listings in the Prosper marketplace are asked how they intend to use their personal loan. The following reflects borrowers’ statements of intended use of loan proceeds with regard to both listings and loans. Prosper does not verify or confirm after funding how loan proceeds are used.
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July 2008 |
July 2008 |
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Personal Loan for |
50% | 43% | |
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Personal Loan for |
23% | 25% | |
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Personal Loan for |
5% | 7% | |
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Personal Loan for |
5% | 3% | |
|
Personal Loan for |
3% | 3% | |
|
Personal Loan for |
14% | 19% | |
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Mix of Funded Borrowers |
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July |
July |
Year-to-Date |
Year-to-Date |
Since |
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| Prime | 47% | 32% | 42% | 29% | 34% | |||||
| Near Prime | 48% | 58% | 53% | 57% | 54% | |||||
| Sub Prime | 5% | 10% | 5% | 14% | 12% | |||||
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Membership and Loan Volume Statistics |
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July |
July |
Year-to-Date |
Year-to-Date |
Since |
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| New Members | 22,491 | 37,784 | 238,527 | 240,243 | 776,655 | |||||
| Funded Loans ($) | $8.0 million | $6.4 million | $54.8 million | $49.8 million | $163.9 million | |||||
| Funded Loans (Units) | 1,366 | 934 | 8,784 | 7,131 | 26,169 | |||||
| Average Loan Size | $5,879 | $6,870 | $6,242 | $6,986 | $6,261 | |||||
| Daily Average Number of Borrower Listings | 2,320 | 2,789 | 2,435 | 2,148 | 1,748 | |||||
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Estimated Annual Return on Prosper Select Index |
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| July 2008 | ||
| Prosper Select Index | 7.21% | |
| Prime Select Index | 7.37% | |
| Near Prime Select Index | 7.01% | |
| Sub Prime Select Index | 8.42% | |
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Average Borrower Rates on Prosper Select Loans |
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July |
June |
July |
Year-to-Date |
Year-to-Date |
Since |
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| Prime Select Loans | 10.06% | 9.38% | 10.29% | 9.82% | 10.01% | 9.96% | ||||||
| Near Prime Select Loans | 16.44% | 16.53% | 17.08% | 16.14% | 15.75% | 16.13% | ||||||
| Sub Prime Select Loans | n/a | 35% | 22.13% | 27.36% | 23.13% | 24.21% | ||||||
Definitions
Since Inception: November 1, 2005 through July 31, 2008. Prosper’s by invitation only “friends and family” launch began on November 1, 2005 and Prosper launched to the general public on February 13, 2006.
2008 Year-to-Date: January 1, 2008 through July 31, 2008.
2007 Year-to-Date: January 1, 2007 through July 31, 2007.
Prosper Select Index: The Prosper Select Index return is the estimated average annual return on principal, based on actual delinquency performance to date. The Prosper Select Index includes AA - E credit grade loans for borrowers whose credit reports at the time of application indicated zero current delinquencies, three or fewer credit inquiries, and a debt-to-income ratio of 40 percent or less. The annual return period reflects loans originated in the twelve month period ending one month prior to the observation date of July 31, 2008. Prime Select includes AA and A credit grade loans (credit scores of 720+). Near Prime Select includes B, C, D credit grade loans (credit scores between 600 and 719). Sub Prime Select includes E credit grade loans (credit scores between 560 and 599).
Average Borrower Rates: Average Borrower Rates are the weighted average borrower rates on Prosper Select Index loans with loan amounts between $5,000 and $10,000. Rates shown are interest rates, not annual percentage rates.
Mix of Funded Borrowers: Prime includes all AA and A credit grade loans (credit scores of 720+). Near Prime includes all B, C, D credit grade loans (credit scores between 600 and 719). Sub Prime includes all E and HR credit grade loans (credit scores below 600).
N/A: Not available; no loans met these criteria.
