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Lending Club and Prosper Top $280 Million in New Loans in November

by Peter Renton on November 29, 2013

In this Holiday shortened month Lending Club and Prosper have a lot to be thankful for. November was another robust month as the industry continues its steady growth upwards. Between the two companies they issued $280.0 million in new loans up from $273.1 million last month and from $99.8 million in November last year.

Lending Club Crosses $3 Billion in Total Loans Issued

They waited until the last business day of the month but Lending Club crossed another major milestone this month. The $3 billion milestone came just over 12 months since they first crossed $1 billion and less than five months since they crossed $2 billion.

Their total volume of new loans issued in November was $234 million up from $223 million in October. They are now on an annual pace of $2.8 billion in loans, a pace that continues to increase every month. Although, the 4.9% month over month growth marked their slowest monthly growth of the year – no doubt impacted by the four day Thanksgiving long weekend.

Below are the monthly statistics for Lending Club as well as the 18-month loan volume chart. (Note: FICO has been removed from the download file so I could not track it this month).

[Update: Lending Club does still make FICO available in the download file but you have to be logged in to your Lending Club account to see this. If you are not logged in you will see the file without FICO scores. FICO was removed from the public file “at the request of our credit reporting partners” said Lending Club in an email to me about this.]

Average loan size: $13,884
Average dollars issued per business day: $12.3 million
Percentage 36/60 month loans: 77.4%/22.6%
Average interest rate: 15.5%
Percentage of whole loans: 35.8%
Total Policy Code 2 loans: $17.6 million (7.5% of the total)

Lending Club p2p loans volume through Nov 2013

Prosper Issues $46 Million in New Loans

We were told this was going to happen. Prosper had said that their overall loan volume in November would be less than October and that is what happened. But the totals can be misleading because every month has a different number of business days and October was the biggest month of the year with 23 business days. With the Thanksgiving holiday we had just 19 business days in November.

With that in mind, we can see that Prosper’s average daily loan originations actually went up substantially this month. In October they averaged $2.2 million in new loans per day whereas in November they averaged $2.4 million per day. Prosper’s president Aaron Vermut told me that they are not trying to hit any specific monthly goal but instead trying to grow the amount of loans issued per day. So, as you can see I am now tracking that metric.

Here are some of the stats from this month as well as Prosper’s 18-month loan volume chart:

Average loan size: $10,980
Average dollars issued per business day: $2.4 million
Percentage 36/60 month loans: 66.8%/33.2%
Average interest rate: 17.3%
Percentage of whole loans: 63.5%
Average FICO score: 700

Prosper Nov 2013

{ 5 comments… read them below or add one }

Dan B November 29, 2013 at 8:44 pm

In reference to the Prosper section, who do you mean by “we”, when you say “We were told this was going to happen”? You & who else?

Reply

core November 29, 2013 at 10:29 pm

Dan- I believe he referring to the list of third parties who are secretly provided with non-public material information in advance of significant events which are likely to influence the price of notes or company valuations.

Peter, it is less than satisfying getting these tidbits of insider information after the fact. Please try to be more timely with these types of posts, particularly as the Lending Club IPO nears. I would like to get in on the action. Perhaps you could sell subscriptions to a premium information service? I for one would gladly pay top dollar to become a member.

Reply

Peter Renton November 30, 2013 at 6:49 am

When I say “we were told” I am referring to this post from October where Aaron Vermut shared this information publicly that Prosper’s monthly loan totals would be choppy. But that average daily loan originations would continue to grow.

Core, Everything I learn from the platforms, that I think will be of interest to investors, I share here. The only exception to this is when they tell me things off the record that they specifically don’t want to be public. This is usually because changes are coming but they are not ready to go public with them yet and they tell me in advance so I can start preparing an article about it. As soon as I get the green light to go public with any information I share it here.

I am not interested in withholding information for my own gain, I try to be as transparent as possible here. So, there will be no paid premium information service at Lend Academy. And as I am sure you are aware once Lending Club nears an IPO I will receive less information in advance.

Reply

writing2reality November 29, 2013 at 9:43 pm

Peter, in regards to Lending Club’s numbers, would you be able to add or disclose the amount of the PC2 loans per month, just to keep a running record of these amounts?

Reply

Peter Renton November 30, 2013 at 6:56 am

Sure thing. I updated the post with those numbers. Interestingly, the percentage of Policy Code 2 loans was down slightly from October.

Reply

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