Prosper Releases Market Survey Results for July 2008

08/12/08 posted by Prosper Blog

Prosper, America’s largest people-to-people lending marketplace, today released results for July 2008. For the first time, the survey includes statistics showing how borrowers who list and get funded in the Prosper marketplace indicate how they plan to use their personal loans. Also noteworthy, the percentage of prime borrowers (borrowers with 720+ credit scores) hit an all time high in July, accounting for 47% of funded loans.

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July 2008 Prosper People-to-People Lending Market Survey

Purpose of Personal Loan Listings and Fundings

Borrowers who post listings in the Prosper marketplace are asked how they intend to use their personal loan. The following reflects borrowers’ statements of intended use of loan proceeds with regard to both listings and loans. Prosper does not verify or confirm after funding how loan proceeds are used.

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	July 2008 Listings	July 2008 Funded Loans
Personal Loan for Debt Consolidation	50%	43%
Personal Loan for Business Use	23%	25%
Personal Loan for Home Improvement	5%	7%
Personal Loan for Education	5%	3%
Personal Loan for Auto / Vehicle	3%	3%
Personal Loan for Other Use	14%	19%

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Mix of Funded Borrowers
	July 2008	July 2007	Year-to Date 2008	Year-to- Date 2007	Since Inception
Prime	47%	32%	42%	29%	34%
Near Prime	48%	58%	53%	57%	54%
Sub Prime	5%	10%	5%	14%	12%

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Membership and Loan Volume Statistics
	July 2008	July 2007	Year-to-Date 2008	Year-to-Date 2007	Since Inception
New Members	22,491	37,784	238,527	240,243	776,655
Funded Loans ($)	$8.0 million	$6.4 million	$54.8 million	$49.8 million	$163.9 million
Funded Loans (Units)	1,366	934	8,784	7,131	26,169
Average Loan Size	$5,879	$6,870	$6,242	$6,986	$6,261
Daily Average Number of Borrower Listings	2,320	2,789	2,435	2,148	1,748

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Estimated Annual Return on Prosper Select Index
		July 2008
Prosper Select Index		7.21%
Prime Select Index		7.37%
Near Prime Select Index		7.01%
Sub Prime Select Index		8.42%

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Average Borrower Rates on Prosper Select Loans
	July 2008	June 2008	June 2007	Year-to- Date 2008	Year-to- Date 2007	Since Inception
Prime Select Loans	10.06%	9.38%	10.29%	9.82%	10.01%	9.96%
Near Prime Select Loans	16.44%	16.53%	17.08%	16.14%	15.75%	16.13%
Sub Prime Select Loans	n/a	35%	22.13%	27.36%	23.13%	24.21%

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Definitions

Since Inception: November 1, 2005 through July 31, 2008. Prosper’s by invitation only “friends and family” launch began on November 1, 2005 and Prosper launched to the general public on February 13, 2006.

2008 Year-to-Date: January 1, 2008 through July 31, 2008.

2007 Year-to-Date: January 1, 2007 through July 31, 2007.

Prosper Select Index: The Prosper Select Index return is the estimated average annual return on principal, based on actual delinquency performance to date. The Prosper Select Index includes AA - E credit grade loans for borrowers whose credit reports at the time of application indicated zero current delinquencies, three or fewer credit inquiries, and a debt-to-income ratio of 40 percent or less. The annual return period reflects loans originated in the twelve month period ending one month prior to the observation date of July 31, 2008. Prime Select includes AA and A credit grade loans (credit scores of 720+). Near Prime Select includes B, C, D credit grade loans (credit scores between 600 and 719). Sub Prime Select includes E credit grade loans (credit scores between 560 and 599).

Average Borrower Rates: Average Borrower Rates are the weighted average borrower rates on Prosper Select Index loans with loan amounts between $5,000 and $10,000. Rates shown are interest rates, not annual percentage rates.

Mix of Funded Borrowers: Prime includes all AA and A credit grade loans (credit scores of 720+). Near Prime includes all B, C, D credit grade loans (credit scores between 600 and 719). Sub Prime includes all E and HR credit grade loans (credit scores below 600).

N/A: Not available; no loans met these criteria.

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