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The Lending Club:
A Social Lending Network
by Lisa Phillips
March 2008
A Social Lending Network
by Lisa Phillips
March 2008
Getting a Lending Club Loan
To get a loan, borrowers must become a member of the website
(no cost to join) and create a listing to request a loan. You can
get an unsecured personal loan from $500 to $25,000 to help
start a business, aid debt settlement with credit cards or students
loans, or for any other purpose.
The loans are funded by other members of Lendingclub.com and
the entire process happens online. Once a listing is created you
will instantly receive feedback as to what interest rate you qualify
for, and you then confirm the amount or pick a different amount at
a different rate.
Lenders on Lending Club
To get a loan, borrowers must become a member of the website
(no cost to join) and create a listing to request a loan. You can
get an unsecured personal loan from $500 to $25,000 to help
start a business, aid debt settlement with credit cards or students
loans, or for any other purpose.
The loans are funded by other members of Lendingclub.com and
the entire process happens online. Once a listing is created you
will instantly receive feedback as to what interest rate you qualify
for, and you then confirm the amount or pick a different amount at
a different rate.
Lenders on Lending Club
More Social Lending Resources
Prosper
Borrowers and lenders meet to make consumer
lending more financially and socially rewarding.
Zopa Loans
A Social Lending Network
Virgin Money
Manage Your Loans Between Friends and Family.
Prosper
Borrowers and lenders meet to make consumer
lending more financially and socially rewarding.
Zopa Loans
A Social Lending Network
Virgin Money
Manage Your Loans Between Friends and Family.
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Social lending networks are becoming increasingly popular with
borrowers as banks and other traditional lenders have tightened
their belts, making unsecured loans more difficult to obtain.
borrowers as banks and other traditional lenders have tightened
their belts, making unsecured loans more difficult to obtain.
Lending Club is an online social
lending network which brings
together lenders and borrowers to
lend money among themselves at
competitive interest rates.
Traditional banks are bypassed
giving borrowers lower interest
rates, and lenders higher returns
on their money.
lending network which brings
together lenders and borrowers to
lend money among themselves at
competitive interest rates.
Traditional banks are bypassed
giving borrowers lower interest
rates, and lenders higher returns
on their money.
Lending Club loans are funded by individuals and/or organizations. The LendingClub
Corporation is also a lender. Lenders can choose to either lend directly to one or several
borrowers. The lender browses through the various loan listing and decides who to loan
money to. Lenders can also get a recommendation from lendingclub.com on whom to lend
money to.
Credit Requirements
There are seven main types of loans, A, B, C, D, E, F and G. These letters refer to the credit
grades assigned to borrowers based on their credit scores. "A" loans are from borrowers with
the highest credit scores (deemed to be the lowest credit risk).
Qualifying for a Lending Club Loan
Borrowers must be a US citizen or permanent resident, and at least 18 years old with a valid
bank account and a valid Social Security number. In order to qualify your FICO score must be
at least 640 with a debt-to-income ratio (excluding mortgage) of no more than 30%. Your credit
file should not contain any current delinquencies, recent bankruptcies (7 years), open tax
liens, and charge-offs or collections account in the past 12 months.
Interest Rates
Lending Club's interest rates are determined by the borrower’s credit risk and market
conditions. Current interest rates start at approximately 7% and can go as high as 18%. All
borrowers are assessed a loan grade which takes into account the borrower’s FICO score,
debt-to-income ratio and loan amount.
All loans are 3-year installment loans with fixed interest rates and equal installments. There are
no penalties or charges if you decide to repay your installment loan early.
Loan Fees
Borrowers pay a processing fee based on the loan grade (A-G) that ranges from 0.75% to
2.00% of the loan amount. The fee is deducted from the loan proceeds prior to depositing the
loan into your bank account.
For more information visit: LendingClub.com
Corporation is also a lender. Lenders can choose to either lend directly to one or several
borrowers. The lender browses through the various loan listing and decides who to loan
money to. Lenders can also get a recommendation from lendingclub.com on whom to lend
money to.
Credit Requirements
There are seven main types of loans, A, B, C, D, E, F and G. These letters refer to the credit
grades assigned to borrowers based on their credit scores. "A" loans are from borrowers with
the highest credit scores (deemed to be the lowest credit risk).
Qualifying for a Lending Club Loan
Borrowers must be a US citizen or permanent resident, and at least 18 years old with a valid
bank account and a valid Social Security number. In order to qualify your FICO score must be
at least 640 with a debt-to-income ratio (excluding mortgage) of no more than 30%. Your credit
file should not contain any current delinquencies, recent bankruptcies (7 years), open tax
liens, and charge-offs or collections account in the past 12 months.
Interest Rates
Lending Club's interest rates are determined by the borrower’s credit risk and market
conditions. Current interest rates start at approximately 7% and can go as high as 18%. All
borrowers are assessed a loan grade which takes into account the borrower’s FICO score,
debt-to-income ratio and loan amount.
All loans are 3-year installment loans with fixed interest rates and equal installments. There are
no penalties or charges if you decide to repay your installment loan early.
Loan Fees
Borrowers pay a processing fee based on the loan grade (A-G) that ranges from 0.75% to
2.00% of the loan amount. The fee is deducted from the loan proceeds prior to depositing the
loan into your bank account.
For more information visit: LendingClub.com
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