In April, US peer-to-peer lending platform Prosper saw its average loan size drop by two per cent month-on-month and the majority of its originations were for lower risk loans.
The platform’s latest performance data update has showed approximately 78 per cent of its originations were rated AA-B, down slightly from about 81 per cent in March, while the dollar amount of C-HR rated loan originations increased by 0.025 month-on-month.
Prosper loans are assigned a rating from AA (lower risk, lower return) to HR (higher risk, higher return).
The average loan size was $13,000 (£9,160) and average borrower income was $107,000 in April, both decreasing by two per cent from March because of a higher mix of C-HR rated loans.
The weighted average borrower rate for April originations dropped by 0.0012 over the prior month.
In March, Prosper released a performance update for the first quarter of the year which showed that credit quality of new originations continues to be strong year-over-year.
The update also showed that 80 per cent of the platform’s borrowers graduating from their payment reduction period were staying current by either making new higher payments or enrolling in a second stage of the payment reduction program, which provides an additional six-month payment reduction period.
“We believe our consistent focus over the last several years on higher credit quality and higher income borrowers has contributed towards the resilient credit performance we’re seeing on the Prosper platform and helped us deliver solid risk-adjusted returns for our investors,” Prosper said at the time.
“We continue to remain disciplined in our approach in a dynamic credit environment.”