P2P-Banking

P2P Lending – Average nominal interest rates in Q2 2014

After looking on the p2p lending loan volumes, today I present an overview of average nominal interest rates for selected p2p lending services. As nominal interest rates are before fees they are easier to compare and an attempt otherwise would mean to list 2 rates for each marketplace (an APR for borrowers and a lender rate after fees). Of course nominal interest rates are in no way an indication to achievable lender yields as these are dependant – aside from fees -on defaults and recoveries occuring. Also on Wellesley actual lender interest rates are much lower than the quoted nominal rate.

What the chart does allow is to gauge the market segment the individual p2p lending marketplace concentrates on. But again this is only a first glance, for any further comparision any securities (like collateral, assets, or provision funds) have to be considered.

Table: P2P Lending nominal unweighted (*weighted) interest rates up to June 2014. Source: own research
Some figures are estimates/approximations.

Notice to p2p lending services not listed:
If you want to be included in this chart (or similar charts) in future, please email the following figures on the first working day of a month: total loan volume originated since inception, loan volume originated in previous month, number of loans originated in previous month, average nominal interest rate of loans originated in previous month.

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