Half a Million Dollars in Facebook Loans

Posted by Renaud Laplanche :: July 30, 2007 @ 7:25 am

On Thursday July 26, the Facebook community passed the mark of half a million dollars lent and borrowed! This milestone was passed 7 weeks after we announced the first loan on June 6, which is certainly faster than we anticipated.

We continue to be impressed with the rapid adoption. The Facebook F8 launch has helped spread the word about our company. The community members have generated a tremendous amount of feedback to help improve our product. These improvements are preparing us well for our expansion beyond Facebook.

To date, there has not been any default or late payments, though it is still very early. The close ratio on the site went up to 84%: this statistic means that more than 4 out of every 5 loans obtain funding. A borrower always has the ability to relist a loan if the individual didn’t receive funding the first time.

Lending Club was recently reported by Netbanker as the top “Money” application on Facebook.

The average interest rate continued to go up to 10.71% partially due to larger loans, which usually carry higher interest rates. For more details on interest rates calculations, please visit https://secure.lendingclub.com/info/how-we-set-interest-rates.action. The average loan size went up from $4,700 to $5,250 in the last 4 weeks.

All this information and more will soon be available directly from the secure site https://secure.lendingclub.com.

Renaud from Lending Club

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