Current  APR Rate Averages

Provider APR +/- w/w
LendingClub 10.49% 0.17%
Prosper 25.59% 1.59%
peer-to-peer loan rate comparison

Borrowing rates on Prosper Marketplace continue to float well above that of its main competitor, Lending Club in this week’s Peer to Peer Loan Index. Prosper APRs averaged 15 percentage points above Lending Club in the second week of October– a consistent trend of the past four weeks that is dramatically higher than the trend from earlier this summer, when average spreads hovered around 6% for the three months prior to September.

The Peer to Peer Loan Index compares borrowers of a similar type – similar credit score and debt-to-income ratios. Yet, week after week, the Index shows that borrowers of similar DTIs and credit scores are better off borrowing from Lending Club.

It is not clear whether this large differential is a cause or a result Prosper’s weak loan volume growth rate this summer. As of October 16th, Prosper is on track to issue the fewest loans since April (1,562). It grew by only 33 loans in September, which followed a month over month decline in August. Compare that to Lending Club which increased loan volume by nearly 600 loans in September, and has been continuing a torrid rate of growth – projected to grow by 12% month over month in October.

The Peer to Peer Loan Index 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.

Apply for a loan at LendingClub.

Apply for a loan at Prosper.