http://blog.lendingclub.com/2007/07/10/peer-to-peer-lending-p2p-lending-102-loan-pricing-basics/ The Official Lending Club blog Sun, 29 Jan 2012 13:31:47 +0000 hourly 1 http://blog.lendingclub.com/2007/07/10/peer-to-peer-lending-p2p-lending-102-loan-pricing-basics/#comment-132 Renaud Laplanche Wed, 11 Jul 2007 16:36:19 +0000 http://blog.lendingclub.com/2007/07/10/p2p-lending-102-loan-pricing-basics/#comment-132 Edward, Thank you for your comment; Lending Club rates go all the way up to 18% for the most “risky” loans. The 11.68% rate displayed on the home page is the net return after expected defaults for a “G” portfolio (ie the most risky on a scale of A to G). If defaults stay within the ranges observed over the last 20 years, our interest rates seem sufficient to provide excellent net returns to lenders. Also keep in mind that all borrowers on Lending Club have 640+ Fico score and less than 20% DTI, which tend to show much less volatility than lower scores and higher DTIs. You can find more information on rates, expected defaults, and expected returns at: https://secure.lendingclub.com/info/check-borrower-rates.action and https://secure.lendingclub.com/info/compare-lender-rates.action Renaud from Lending Club Edward, Thank you for your comment; Lending Club rates go all the
way up to 18% for the most “risky” loans. The 11.68% rate displayed
on the home page is the net return after expected defaults for a
“G” portfolio (ie the most risky on a scale of A to G). If defaults
stay within the ranges observed over the last 20 years, our
interest rates seem sufficient to provide excellent net returns to
lenders. Also keep in mind that all borrowers on Lending Club have
640+ Fico score and less than 20% DTI, which tend to show much less
volatility than lower scores and higher DTIs. You can find more
information on rates, expected defaults, and expected returns at:
https://secure.lendingclub.com/info/check-borrower-rates.action and
https://secure.lendingclub.com/info/compare-lender-rates.action
Renaud from Lending Club

]]> http://blog.lendingclub.com/2007/07/10/peer-to-peer-lending-p2p-lending-102-loan-pricing-basics/#comment-131 Edward Wed, 11 Jul 2007 12:02:31 +0000 http://blog.lendingclub.com/2007/07/10/p2p-lending-102-loan-pricing-basics/#comment-131 *cough* *cough* Your rates for lenders are way too low to compensate for the risk & compared to exiting market alternatives. Looking forward to seeing some competition. Best of luck. *cough* *cough* Your rates for lenders are way too low to
compensate for the risk & compared to exiting market
alternatives. Looking forward to seeing some competition. Best of
luck.

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