Provider APR +/- w/w
LendingClub 9.97% 0.52%
Prosper 15.76% 2.81%

Lending Club borrowing rates hit their lowest mark in over two months this past week as volume shot up to a record pace for the platform. Average APRs dropped to 9.97% – the first drop below 10% since the Pulse began measuring earlier this year. The rate drop occurred during a week when Lending Club issued 2,535 loans for $32,032 – a record week that puts it on pace to more than double the volume in July, 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 platforms, the continued difference in borrowing costs may be impacting Prosper’s ability to keep pace with Lending Club, whose lending volume was approximately 330% greater than Prosper in July.