Prosper’s average loan size fell in December
US peer-to-peer lending platform Prosper saw its average loan size fall by $234 (£190) in December to $13,619, equating to a 1.7 per cent decrease month-over-month.
This was in contrast to the previous month, when average loan size rose by 3.9 per cent to $13,853.
According to the lender’s latest performance update, AA-B rated loan originations in December comprised approximately 58.2 per cent of total loan originations, representing a 5.3 per cent decline month-over-month.
Read more: Prosper sees average loan size fall by two per cent
Prosper loans are assigned a rating from AA (lower risk, lower return) to HR (higher risk, higher return).
B rated loans took the greatest proportion of originations at 28.6 per cent. C rated loans accounted for 16.1 per cent, D for 11.5 per cent and E for 13.6 per cent. Just 0.7 per cent were rated HR.
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The weighted average borrower rate for December originations increased by 119 basic points month-over-month to 16.1 per cent and the median prosper loan to income monthly payment ratio for December remained stable month-over-month at 5.3 per cent.
The update also includes a breakdown of cumulative gross loss per origination dollar, delinquency per origination trend, remaining balance by vintage and cumulative prepayments by vintage, dating back to 2013.
“The Prosper performance updates are designed to help our investor community better understand performance trends and provide important insights into the trends we are seeing and the information needed to invest through the Prosper platform,” the update said.