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US P2P Lenders Issue $2.4 Billion in Loans in 2013

December 31, 2013 By Peter Renton 7 Comments

Views: 50

Happy New Year! The books have just been closed on 2013 and what a year it has been for Lending Club and Prosper. Back in 2012 the two companies combined for $871 million in new loans issued. The numbers for 2013 have completely dwarfed that number – the combined total was $2.42 billion. That is a growth rate of 177%.

Lending Club Issues Over $2 Billion in New Loans in 2013

About half way through the year Renaud Laplanche, the CEO of Lending Club, started saying publicly that Lending Club would issue $2 billion in loans this year. It was a nice round number that garnered a lot of attention. Sure enough, Lending Club achieved their goal comfortably, issuing $2.06 billion in total loans for the year up from $718 million in 2012.

For the month of December Lending Club issued  $241.3 million in new loans, just short of the quarter billion mark. This number was up from $234 million in November and is just slightly less than they issued in all of 2011. Their growth continues unabated and there is no end in sight as far as I can tell. If they keep this same growth rate they will issue over $5 billion in 2014.

Below are the monthly statistics for Lending Club as well as the 18-month loan volume chart (the black line is the three-month moving average).

Average loan size: $14,157
Average dollars issued per business day: $11.5 million
Percentage 36/60 month loans: 77.2%/22.8%
Average interest rate: 15.54%
Percentage of whole loans: 36.6%
Total Policy Code 2 loans: $15.6 million (6.5% of the total)

Lending Club p2p loan volume through Dec 2013

Prosper Ends 2013 With a Very Strong Month

I remember writing this end of month post 12 months ago where Prosper was seeing a precipitous decline in loan volume. In December 2012 they issued just $9.6 million in new loans and it was their third straight month of lending volume declines. Fast forward 12 months and we have a very, very different story.

This December Prosper had their strongest month ever with $59.8 million in new loans issued. This was up 29.9% from $46.0 million in November and marks a new high water mark for the company. As Ron Suber pointed out to me in an email today they are very focused on growing dollars originated per business day and this month saw that number increase $425,000 over last month.

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

Average loan size: $11,746
Average dollars issued per business day: $2.8 million
Percentage 36/60 month loans: 64.0%/36.0%
Average interest rate: 16.4%
Percentage of whole loans: 70.7%
Average FICO score: 700

Prosper's p2p loan volume through December 2013

Filed Under: Peer to Peer Lending Tagged With: Lending Club, monthly charts, Prosper

Views: 50

Comments

  1. Mattg says

    January 2, 2014 at 10:00 am

    Interesting how 70% of Prosper’s loan origination comes from Whole loan investing… No wonder why there is so little left over in the fractional market

    Reply
    • Peter Renton says

      January 2, 2014 at 11:29 am

      Yes, if you are focused on the higher interest loans they are snapped up very quickly at Prosper these days. Although to be fair the total number of loans available for retail investors keeps rising every month but you have to be quick if you want the “best” loans.

      Reply
  2. John Schmittou says

    February 7, 2014 at 5:57 pm

    Looking for small loan of. 30,000 have had no luck ! I’m trying to bye one commercial truck, need someone to help me get started? Don’t mined paying a little more back to get this do!! Have a good lease to work , 2,500 to 3,000 a week. Credit score is 659. Have 30 yrs. experience.in trucking. I am 110% sure I can get this payed back in 18 mouths………thank’s Johnny Schmittou….

    Reply
    • Peter Renton says

      February 8, 2014 at 7:22 am

      Hi John, Sorry you are having trouble – but this is not the place to be soliciting for a loan. All the readers here, myself includes, invest through the online platforms. Here are a couple of other options for you to try:
      http://www.springleaffinancial.com/index.html
      https://www.freedomplus.com/

      Best of luck.

      Reply

Trackbacks

  1. For Peer to Peer Lending, 2014 is Going to be Awesome says:
    January 9, 2014 at 9:11 pm

    […] was a good one: the game has fundamentally changed. Lending Club & Prosper issued a combined $300 million in loans in December 2013. 43% of all the loans issued ($130m) came from loans purchased whole, […]

    Reply
  2. Prosper Marketplace – December and Year-End 2013 Update - WriteYourOwnReality says:
    February 6, 2014 at 11:01 am

    […] Naturally this is a frustrating aspect of peer to peer lending, and one that has become common with the many investors as the industry’s popularity has exploded this past year. Prosper specifically has rebounded quite strongly under new management and institutional demand is absorbing most of the loans. During December, institutional and other large investors snapped up 70.7% of issued loans as whole loans, up from 63.5% in November (Lend Academy: US P2P Lenders issue $2.4 Billion in Loans in 2013). […]

    Reply
  3. 21 Technologies That Will Decentralize the World | Truth Progress says:
    March 11, 2014 at 7:02 am

    […] Services like Lending Club, Zopa, and Prosper are cutting out institutional lenders and big banks by enabling people to make loans directly to each other. Over $2.4 billion in peer-to-peer loans were issued in 2013. […]

    Reply

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LendIt Fintech News, Powered by Lend Academy, has been bringing you all the news and information about fintech and online lending since 2010 when it was founded by Peter Renton. We not only have the industry’s most active news site, but also the largest investor forum and the first and most popular podcast.

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