Current  APR Rate Averages

Provider APR +/- w/w
LendingClub 8.29% 0.07%
Prosper 13.71% 6.55%
 

 

Peer-to-peer lending providers Prosper Marketplace and Lending Club closed out August with their lowest borrowing rates in several weeks. APRs on Prosper dropped by a significant 5.55% in one week to 13.71%, while Lending Club rates dropped over the past two weeks to their lowest levels since The Loan Sheet began tracking APRs in May.

The late month swoon caps a month when Lending Club issued a record $70 million in loans – a 17% month over month increase – and three times the volume of a year ago. Meanwhile, Prosper’s loan volume shrank by $600K this month to $14.3 million, marking its first month-over-month volume decline in over two years.  The two providers seem to be moving in opposite directions in terms of loan volume.

Lending Club continues to surge ahead of Prosper in terms of market share. It now garners 82% of the U.S. peer to peer loan market – up from 77% a year ago.  One factor in the growing disparity could be the difference in borrowing costs. Lending Club APRs are currently trending at about 5% below that of Prosper.

The Loan Sheet’s Peer Lending Rate Pulse compares average APRs from a pool of loans on Prosper and Lending Club. The loan pool includes all borrowers with 36-month term lengths, debt-to-income ratios of 10-20%, and credit scores in the top 20% of the range.