Peer to Peer Lending: Loan Filter

Jared Kulbeth

MBA 614 Final Project

Executive Summary

Background:

This project addresses investing in the peer to peer lending industry.  Peer to peer lending involves a borrower funding a personal loan by way of multiple investment lenders. Borrowers are matched with lenders through peer to peer lending websites.  Borrowers generally get a better rate than credit cards or traditional banks.  Investors generally get a higher return than bank savings products and incur less risk than typical investment vehicles.    

I’m deriving this project from a lender/investor perspective.  The company I’m choosing to use is called Lending Club.  The site lists all the loans submitted by applicants meeting Lending Club’s minimum loan criteria.  Loans are assigned grade values based on several risk criteria such as credit score of borrower, loan amount, term of loan, etc.  Lower risk loans are charged lower rates which generally means lower return for the investor.  Higher risk loans incur higher lending rates with the corresponding chance of greater return for the investor.  The lender then looks through the list of loans and selects which loans in which he wishes to invest.

Project Overview:

At any given time there are well over 1,000 different loans to choose from at Lending Club.  My project addresses the time consuming task of browsing all these loans to the find the loans which meets the investor’s desired criteria for investing.  The user will be able to login to the website and download the available loans to a spreadsheet.  The user will then be given options for filtering the loans.  The final result is a list of loans which meet the lender’s investment criteria.

• Final_VBA_project_write_up.pdf http://files.gove.net/shares/files/14w/jwk23/Lending_Club_project.xlsm
• Final project code http://files.gove.net/shares/files/14w/jwk23/Lending_Club_project.xlsm