Prosper’s average loan size dips due to less high-rated originations
US peer-to-peer lending platform Prosper saw its average loan size dip by 0.5 per cent month-on-month in March to $14,199 (£11,451), which it attributed to a lower mix of AA-B rated loan originations.
This is the second consecutive month-on-month drop in average loan size.
Prosper loans are assigned a rating from AA (lower risk, lower return) to HR (higher risk, higher return).
Prosper’s average loan size is the largest for its top-rated loans. In March, its AA-rated loans had an average size of $17,807, compared to its HR loans at $7,774.
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The lender’s latest update also revealed that the proportion of AA-B rated loan originations in March comprised approximately 58.5 per cent of total loan originations, representing a 2.1 per cent decrease month-on-month.
B-rated loans continued to take the largest share of originations, at 29.6 per cent, while HR loans made up just 0.8 per cent.
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The weighted average borrower rate for January originations rose month-on-month to 16.8 per cent and the median loan to income monthly payment ratio increased slightly month-over-month by 0.1 per cent to 5.6 per cent.