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Lending Club and Prosper issue $273.1 million in October

Lending Club and Prosper have announced that together they have issued $273.1 million in new loans – an increase of 174% to last year.  

a stack of money

The new figure is up from $97.4 million from a year ago and despite the larger numbers the rate of growth is not slowing down – for most of this year the combined annual growth rate has stayed between 160% and 180%.

Lending Club

October was another solid month for Lending Club as their loans issued continue to grow each month.  Loan volume was up 9.7% over the previous month to $223.1 million with the number of loans issued growing to 16,247.

Lending Club has seen a continued growth in loan origination throughout this year but last month there was one big change for investors at Lending Club. During October there were a lot more loans available compared to the two previous months where the number of available loans routinely dropped to less than 50. This month Lending Club often went over 500 loans but always averaged between to 200-250 loans throughout the month.

Scott Sanborn, Chief Operating Officer at Lending Club, said that Lending Club has been working with their large investors to delay their deployment of capital and to stage new capital coming in over a longer time period. At the same time they have been working hard to increase the borrower volume.

Below are some stats from October for Lending Club as well as their 18-month chart. The black line in the chart below is the three month moving average.

Average loan size: $13,729Percentage 36/60 month loans: 74.5%/25.5%Average interest rate: 16.1%
Percentage of whole loans: 34.4%
Average FICO score: 699

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The leading peer-to-peer lending company announced earlier this week that that it has had its largest month ever. Prosper closed October with over $50 million in originations, which was a 50% increase over September, and a massive 500% increase from January.

This is the 8th consecutive month of growth for Prosper, which has originated $690 million in loans to date as peer-to-peer lending continues to gain significant momentum as an easy, low-cost alternative to traditional lenders.

Stephen Vermut, CEO of Prosper, said, “Our number one goal is to create the best possible experience for both borrowers and lenders on our platform.

“We do this by originating each and every loan through the platform as soon as it is funded by lenders and verified by our credit team. This reduces the lag time so that qualified borrowers are quickly provided access to the funds they’ve requested, and lenders can put their capital to work immediately.

Prosper had predicted back in February that they would do that $15 million in March, $30 million by July and $50 million by the end of the year. At that point in the year Prosper’s loan volume was languishing and they would issue just $9 million in new loans that month down 43% from their peak five months before, but the chart bellows shows they have reach their targets.

Below are the statistics for Prosper this month as well as their 18-month chart.

Average loan size: $10,517Percentage 36/60 month loans: 67.1%/32.9%Average interest rate: 18.7%
Percentage of whole loans: 62.9%
Average FICO score: 695

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