(PRWEB) August 10, 2012
The Loan Sheet's Peer Lending Pulse reports that APRs for peer-to-peer lending platforms dropped this week, while loan volume is on pace for another record month. Lending Club, the largest provider, saw borrowing rates drop to 9.97% - the first drop below 10% since the Pulse began measuring earlier this year. The rate drop occurred while Lending Club issued 2,535 loans for $32,032 – a record week that puts the platform on pace to more than double its July volume, when it broke a previous record. Lending Club continues to provide peer-to-peer loans at lower costs than its primary competitor, Prosper Marketplace, which finished the week up at an average APR of 15.76%. Prosper also had its biggest lending month in July, but saw a light first week of lending in August, lending just 257 loans for $2 million.
While investors experience comparable returns on both Lending Club and Prosper, the continued difference in borrowing costs between the two platforms could be impacting Prosper’s ability to keep pace with Lending Club, whose loan volume in July was approximately 330% greater than that of Prosper.
TheLoanSheet.com is the leading independent source of peer-to-peer lending information for borrowers. TheLoanSheet’s Peer Lending Pulse rates are taken from borrowers with 36-month term lengths, debt-to-income ratios of 10-20%, and credit scores in the top 20% of the range.
You can see more peer-to-peer lending market information at http://www.theloansheet.com/category/blog.