WHAT IS A PEER-TO-PEER LENDING BENCHMARK?
The CrowdBureau peer-to-peer lending benchmark is serves as a standard by which others may measure or use as a basis for evaluation or comparison of market value, volume, interest rates for loans that have listed on the peer-to-peer lending platforms across the globe.
WHAT DOES CROWDBUREAU MEASURE AND TRACK?
CrowdBureau tracks the events that occur on the loans that list on a platform through its origination. All listings do not become loans; although on most platforms there is minimum or maximum loan amount the borrower can accept once either funded target amount is achieved. Once a loan originates, CrowdBureau tracks the loan performance until the loan matures, defaults or charge-off.
WHAT IS A LISTING?
A listing is a loan whose loan progress is less than 100% funded for either the minimum or maximum target amount. A listing is the ‘ask’ phase, no binding contract between parties (individuals, institutions) and indicates the ‘ask’ volume in the market. Listing benchmarks are updated daily.
WHAT IS A LOAN?
A loan is a listing that has a Loan progress equal to 100%. This means the borrower has met the minimum or maximum of the funding target from lenders. A loan is an active, binding contract between parties (individuals, institutions) which gives the loan/ credit volume in the market. Loan benchmarks are updated monthly and quarterly.
Interest Rate is the the proportion of a loan that is charged as a percentage to the borrower, typically expressed as an annual percentage of the loan principle outstanding.
WHAT IS VOLUME?
Volume is the number of borrower applicants requesting loans on a peer-to-peer lending platform.
WHAT IS VALUE?
Value is the amount of money the borrower has requested for a loan. This amount can have a minimum and maximum amount requested when the loan is in the listing phase.
WHAT IS REPAYMENT TERM?
Repayment Term is the borrower period to repay the loan. This term can be donated in days, weeks, months, years based on the peer-to-peer lending platform and each respective business model.
WHAT IS LOAN TYPE?
Most consumers have at least one financial product that they borrowed money for, this would include real estate loans (residential and commercial), student loans, consumer loans, business loans, agriculture loans, renewable energy loans, and more.
WHAT CURRENCY IS USED IN THE BENCHMARKS?
There are three levels depicted for the benchmarks, 1) Continent – all currencies have been normalized to US Dollar. 2) Country – all currency have been normalized to US Dollar. 3) Platform – platform level views are in its native currency (e.g, the United States – US Dollar, United Kingdom – British Sterling, 28 European Countries – Euro, China – Yuan or RMB, India – Rupee, Singapore – Singapore Dollar, Japan – Yen, and Switzerland – Swiss Franc and more.).