Another Fantastic Month for Peer to Peer Lending

May will go down as a great month for p2p lending. Lending Club broke yet another record by originating over $18.5 million in loans for the month. And Prosper continued their strong upward trend with new loan volume of over $5.6 million.

As is usual Lending Club saw a big last day surge in new loans issued as the institutional money came rolling in. This month the surge was bigger than ever – over $5 million was put into new loans today which has to be a record for any single day in the history of peer to peer lending. The number of loans was also a record – 1,704 loans were issued in May for an average of $10,875 per loan. Below is the monthly new loan chart going back to January last year. The black line is the three month moving average.

Lending Club new loans May 2011

Prosper continues to grow by leaps and bounds. Just six months ago, in November 2010, Prosper originated around $2.6 million in new loans. In May 2011 that number had grown to $5.6 million, a staggering increase of 112%. As you can see by the chart below the three month rolling average curve continues to grow steeply. Prosper also saw the introduction of a large institutional lender this month. Going by the screen name of worth-blanket2 this lender invested over $1.2 million alone this month. That certainly helped Prosper wrap up a great month.

Prosper p2p lending loan numbers

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Dan B
Dan B
May. 31, 2011 5:55 pm

What was Prosper’s best month ever since inception?

Jun. 1, 2011 1:07 pm

Ive seen a few more institutional investors lately. They are fairly easy to spot so far. They are often the top investors on loans and bid on many in the same day.

Dan B
Dan B
Jun. 1, 2011 11:56 pm

Let me be the first one to predict that Lending Club’s end of June total will be $19 1/4 million…………& not a dollar less!

Jun. 2, 2011 7:32 am

I am a lender and a borrower on Prosper but it’s been 3 years since my first Prosper loan and now that I am looking for a 2nd loan, I’m little lost at the new way it’s set up on the borrower side. I no longer see the blog threads where you can advertise your loan for people to come and bid on etc. And since I’m looking for a large amount to be funded in a 14 day period, I’m unsure of the best technique to do that. Do any of you have any insight on where a borrower should advertise their loan to be funded other than with their group if they are a lender (which I’ve done already)?

Jun. 2, 2011 10:19 am

Thank you Peter. I appreciate your help. My loan was activated on 5/27/11 but I had no idea where to advertise it anymore so the prosper forum link was really helpful. I’ve just registered for it. I hope that makes a difference in bidder interest. Have a great day!

Jun. 9, 2011 11:15 pm, one of the largest peer-to-peer lending operations, recently announced a fairly large round of venture capital raising, according to the Washington Post. Not everyone is eligible to borrow installment loans through this site. Loan applicants are subject to a credit check upon applying for a membership, and neither Prosper nor LendingClub will lend to a borrower with a bad credit score.