Lending Club is a peer-to-peer lending network. Borrowers with good credit can get personal loans at interest rates they find more attractive than those available from conventional funding sources such as banks and credit cards, taking advantage of a streamlined process between the source of funds (lenders) and the borrowers who need those funds.

Lenders get an opportunity to fund specific borrowers by investing in Notes we issue that correspond to specific borrower loans. The stated interest rates on Notes range from 6.69% to 19.37% (after deduction of our 1.00% service charge). Notes are offered only by means of a prospectus.

Borrowers get personal loans at better rates

Borrowers complete a personal loan request online and can instantly view the interest rate they qualify for (it's free to check, but we have strict credit standards, such as a minimum FICO score of 660, so we do apologize if you don't qualify). There are no hidden fees, and the interest rate is fixed for the full three-year duration of the loan. As part of the loan application, a borrower must provide a social security number and other identifying information.

Approved borrowers can then list their loan request on the site, at the interest rate they qualify for. There is a two-week loan listing period during which lenders can review loan listings and decide to fund the borrowers. If a loan is not fully funded at the end of the two-week period, the borrower can decide to accept partial funding or relist the loan for another two-week period. Most loan requests receive full funding.

Borrowers typically request personal loans on Lending Club to finance purchases, pay for one-time events (like weddings or continuing education classes), or refinance existing high-interest loans, credit card balances or other revolving debt. Loan proceeds are deposited directly into the borrower's bank account, and each monthly payment is taken directly out of that same bank account.

Lenders help borrowers out while seeking attractive returns

Lenders get an opportunity to fund specific borrowers by investing in Notes we issue that correspond to specific borrower loans. Stated interest rates on our Notes range from 6.69% to 19.37% (before the deduction of our 1.00% service charge). The Notes are offered only by means of a prospectus, and lenders should read the complete description of the Notes, as well as the other information about us and our platform, in the prospectus.

The process for lenders to invest in Notes is straightforward: lenders review loan listings online and decide which ones to fund. Lenders can transfer funds between their bank account and their Lending Club account, and vice versa, at no charge through electronic funds transfer between linked accounts. Once a lender has invested in a Note that corresponds to a member loan, we channel the monthly payments we receive from borrowers to lenders, net of our 1.00% service charge. Each monthly payment is scheduled to include principal and interest, because the borrower loans are fully amortizing over 3 years. Lender members who establish a brokerage relationship with the registered broker-dealer operating the Lending Club Trading Platform may also offer their Notes for sale prior to maturity on the trading platform.

More than just an investment opportunity, most of our lenders find it particularly rewarding to earn attractive returns while helping other members.

More information can be found by reading the prospectus.