Prosper Reports 17% Increase in Loans in November

The leader in peer-to-peer lending rolls out significant enhancements to its loans marketplace

SAN FRANCISCO--()--Prosper.com, the world’s largest peer-to-peer lending marketplace with over one million members and $211 million in funded loans, today released its Market Survey for November, which shows a 17% increase in loans funded on the site during the month. Heading into the New Year, Prosper also announced that it has made several important enhancements to the site, the most significant of which is the move to pre-set interest rates.

“In addition to the jump in the total number of loans on Prosper last month, we discovered another interesting trend—over the past six months there has been a sharp increase in the number of loans being used specifically for home improvement projects,” said Chris Larsen, CEO and Co-founder of Prosper. “This suggests that people may be feeling more confident in the economy and are beginning to spend on their homes again.”

Prosper has also rolled out several important enhancements to its website to improve the lender and borrower experience. Prosper has eliminated the auction for new loan listings and has moved to pre-set interest rates. This offers several benefits for both lenders and borrowers, including simplifying and speeding up the process of funding loans on Prosper.

“While many lenders enjoyed the auction system conceptually, we heard consistent feedback that in practice, auctions made the deployment of funds more time consuming with little gain in lender returns,” Larsen said. “We’re excited about the many improvements and hope they make your investment and borrowing experience with us even more prosperous.”

To learn more about the new pre-set interest rates and other updates, please visit Prosper.com.

To register to automatically receive Prosper’s monthly market surveys, click here to send an email with “SUBSCRIBE” in the subject line.

Prosper Statistics for November 2010:

                                                         

Prosper

Rating

      Borrower Rate       Effective Lender Yield       Estimated Annual Loss Rate       Estimated Annual

Return

      Average Loan Amount       Loan

Volume

      % of Funded Loans
AA       8.40%       7.40%       1.47%       5.93%       $7,391       $317,800       12%
A       11.24%       10.21%       3.46%       6.75%       $8,283       $323,024       12%
B       15.11%       13.87%       5.67%       8.20%       $7,826       $618,250       23%
C       22.34%       20.84%       8.60%       12.24%       $7,340       $73,400       3%
D       26.36%       24.73%       10.43%       14.30%       $4,065       $674,790       26%
E       33.27%       30.78%       14.20%       16.58%       $3,929       $337,900       13%
HR       33.07%       32.07%       22.33%       7.85%       $2,554       $296,300       11%
All Funded Loans       21.24%       19.81%       9.15%       10.66%       $4,901       $2,614,464       100%
                                         

Prosper Peer-to-Peer Borrower Loan Purpose

        Funded Loans
Debt Consolidation       49%
Home Improvement       11%
Business Use       14%
Auto / Vehicle       6%
Other Use       20%
     

Definitions

Borrower Rate: The interest rate borrowers pay on their Prosper personal loan.

Effective Lender Yield: Effective Lender Yield is equal to the Borrower Rate: (i) minus the servicing fee rate, (ii) minus estimated uncollected interest on charge-offs, (iii) plus estimated collected late fees.

Estimated Annual Loss Rate and Estimated Annual Return: Estimated Annual Return is the projected average annual return on funds invested in all loans with a certain Prosper Rating originated on our platform during the month of November, 2010. Expected Annual Return is calculated by subtracting the Estimated Annual Loss Rate for those loans from the corresponding Effective Lender Yield. The Expected Annual Loss Rate is the estimated principal loss on charge-offs for loans originated during November, and is based on the historical performance of Prosper loans for borrowers with similar characteristics. The calculations of Effective Lender Yield, Estimated Annual Loss Rate and Estimated Annual Return require significant assumptions about the repayment of loans, and lenders should make their own judgments with respect to the accuracy of these assumptions. Actual performance may differ from estimated performance.

Loan Purpose: Borrowers who post listings in the Prosper marketplace are asked how they intend to use their peer-to-peer lending personal loan. The loan purpose reflects borrowers’ statements of intended use of loan proceeds and is the percentage of total dollars funded for the month. Prosper does not verify or confirm after funding how loan proceeds are used.

About Prosper

Prosper Marketplace Inc. is the world's largest peer-to-peer lending marketplace with over one million members and more than $211 million in funded loans.

Prosper allows people to invest in each other in a way that is financially and socially rewarding. Borrowers list loan requests between $2,000 and $25,000. Individual and institutional investors invest in minimum increments of $25 on loan listings they select. In addition to credit scores, ratings and histories, investors can consider borrowers' personal loan descriptions, endorsements from friends, and community affiliations. Once the auction ends, Prosper handles the funding and servicing of the loan on behalf of the matched borrowers and investors.

Prosper was co-founded by Chris Larsen, co-founder of E-LOAN. Prosper has raised $57.7 million in venture capital and is backed by financial and technology luminaries including, Jim Breyer of Accel Partners; Bob Kagle of Benchmark Capital; CompuCredit; Omidyar Network; Capital One Co-founder Nigel Morris of QED Investors; Court Coursey of TomorrowVentures; and Larry Cheng of Volition Capital.

Notes offered by Prospectus.

Contacts

LEWIS PR for Prosper
Kristina Skinner, 415-992-4400
prosper@lewispr.com

Twitter: ProsperLoans

Contacts

LEWIS PR for Prosper
Kristina Skinner, 415-992-4400
prosper@lewispr.com

Twitter: ProsperLoans