Lending Club and Prosper Pass $1 Billion in Total Loans Issued

Over the long weekend Lending Club and Prosper hit a major milestone. Together, they have issued more than $1 billion in new loans now. You can read my story on Techcrunch about this milestone here.

As of this writing we stand at $345,290,750 in total loans issued for Prosper and $655,349,875 for Lending Club (according to their respective websites) for a grand total of $$1,000,640,625. Here is a quick look inside some of these numbers.

ProsperLending Club
Date LaunchedFeb-2006Jun-2007
Total Amount Loaned$345,290,750 $655,349,875
Total Number of Loans55,303 57,119
Average Loan Amount$6,244$11,473
Average Interest Rate18.72%13.09%
Loans Fully Paid Off$124,391,064 $96,377,425
Total Defaults$51,504,307 $20,467,823

Now, I will be the first to admit that this $1 billion in total loans for p2p lending in the U.S. was really crossed some time ago. It doesn’t take into account any loans from Peerform who are still going strong but don’t share their loan volume. I know back in the early days there were also loans issued by Loanio and Pertuity Direct although the numbers there wouldn’t have made much of a dent in the $1 billion. It also doesn’t include friends and family p2p loans issued by the many services such as National Family Mortgage and ZimpleMoney nor does it include any of the student p2p loan services.

These days, though, the only real p2p lending options for investors are Lending Club and Prosper. We have a duopoly in p2p lending in this country with just two major players and that doesn’t look like changing any time soon. Together they just crossed $1 billion in new loans. That is a milestone worth noting.

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Frankie C
Frankie C
May. 30, 2012 12:48 am

I’d be curious to see that graph with red stacked on top of blue. It looks like Prosper had a huge head-start and has been almost stagnating while LC exploded.

Rich
Rich
May. 30, 2012 3:39 pm

How does this compare to the volume of unsecured credit card debt?

Random second question: Does anyone know why the Prosper history page will show a note payment on day X but the loan detail page will show an effective date of day X minus 8 days (or some similar interval) for the same payment?

Dan B
Dan B
May. 30, 2012 9:23 pm

Rich…………Total unsecured credit card debt is in the $2 trillion range, though I’m not sure how wise it is to compare that directly with p2p loans…………….which of course, aren’t revolving.

As to your 2nd question, I believe the number is 6-8 days depending on where it falls on a weekend etc. & it has to do with the date a payment initially processes & the date it clears or is final. I’m pretty sure my terminology is off, but I’m trusting that you get the gist.

Rich
Rich
May. 31, 2012 9:48 am

Thanks Dan. That makes sense. It comes in on day 1, and it takes the system 6-8 days to determine it will stick. At that point it shows as effective in the loan detail on the date of payment and in the history page as the date of the determination of finality.

CA-Lender
CA-Lender
May. 31, 2012 10:55 am

Peter,

Growth is still strong. They hit the $1 billion mark ahead of our estimated guesses (remember, I said Jun 1, and you said May 30).

What I liked seeing with the growth at Prosper is they were able to grow another 6.5% month over month (I’ve adjusted the growth based on days in the months 30 vs 31), without having to offer any bonus incentives to close out loans at the end of the month. I don’t think I can remember the last time they did that. When prosper doesn’t have to “bribe” lenders to close loans, that shows real strength (versus artificially inflated growth).

I still have a bit of concern about worth-blanket doing 25-30% of the total volume, but as volume increases, his percentage becomes less concerning.