P2P Lending Returns

Peer to Peer lending sites LendingClub and Prosper have been around several years now and have logged a pretty good record of returns for lenders.


Loans have provided stable, predictable returns for lenders.  As of this writing LendingClub has originated more than $520 million in loans with average returns ranging from 5.83% to 13.47% depending on the borrower credit rating.  

Investors in LendingClub loans are able to diversify investments across notes by investing as little as $25 in any individual note.  Lenders investing in 800 or more notes over any time period have earned positive returns 100% of the time, with 93% of investors earning impressive returns of anywhere between 6-18% annualized returns.

Investors in Prosper loans have also fared well with over $300 million in loans issued through the site since its inception.  The Prosper experience is very similar to LendingClub with the company rating each loan and assigning an interest rate based on the site's proprietary credit scoring.  Prosper showcases returns based on "seasoned" loans which are loans that have been originated 10 or more month ago.  They feel this gives the most accurate representation of what lender returns will be.  As the graphic below shows the returns are similar to those on LendingClub.  Lender returns have ranged from 5.18% to 17.71% depending on credit rating.