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Prosper Releases Market Survey Results for July 2008

by Prosper on 08/12/08

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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Prosper, Prosper.com, and the Prosper logo are registered trademarks or service marks of Prosper Funding LLC. Copyright © 2005-2013 Prosper Funding LLC. All rights reserved.

As of February 1, 2013, the Prosper marketplace was transferred by Prosper Marketplace, Inc. to Prosper Funding LLC, a wholly-owned subsidiary of Prosper Marketplace, Inc. From and after February 1, 2013 Prosper Funding LLC is the sole obligator of Notes offered and secured by loans made through the Prosper marketplace, including Notes originally issues by Prosper Marketplace, Inc. prior to such transfer. Prosper Marketplace Inc. contiinues to provide services to Prosper Funding LLC relating to loan and Note servicing, and may interact with borrowers and investors in relation thereto as agent of Prosper Funding, LLC. Except where otherwise noted, throughout this website "Prosper" refers to Prosper Funding LLC including acting directly or through its agents.

All personal loans are made by WebBank, a Utah-chartered Industrial Bank. All Prosper personal loans are unsecured, fully amortizing personal loans.

Notes offered by Prospectus. Notes investors receive are dependent for payment on personal loans to borrowers. Not FDIC-insured; Investments may lose value; No Prosper or bank guarantee. Prosper does not verify all information provided by borrowers in listings. Investors should review the prospectus before investing.