Prosper Releases Market Survey Results

Prosper just released their monthly market survey for July 2008. For the first time, the survey includes statistics showing how borrowers who list and get funded in the Prosper marketplace indicate how they plan to use their personal loans. Also noteworthy, the percentage of prime borrowers (borrowers with 720+ credit scores) hit an all time high in July, accounting for 47% of funded loans.

July 2008 Funded Loans

  • Personal Loan for Debt Consolidation – 43%
  • Personal Loan for Business Use – 25%
  • Personal Loan for Home Improvement – 7%
  • Personal Loan for Education – 3% (Fynanz is trying to own this niche)
  • Personal Loan for Auto/Vehicle – 3%
  • Personal Loan for Other Use – 19%

Last year, soon after Lending Club launched, Lending Club released similar statistics showing their “smart” borrowers were requesting most loans for debt consolidation or to pay of higher credit card rates.