Lending Club Success: Surpassing $16 Billion in Loans
Founded in 2007, Lending Club’s mission is to transform the banking system to make credit more affordable and investing more rewarding. With that mission in mind, we’ve now facilitated over $16 billion in loans – 68% of which went to paying off credit cards or refinancing existing loans1!
By utilizing technology and removing branch infrastructure, we’re able to operate at lower costs than traditional financial institutions. Those savings have been passed on to borrowers, who benefit from lower rates. Borrowers who obtained a personal loan through Lending Club report savings of 35% compared to the interest rates they were paying on their outstanding debt or credit cards.2. And, 99% of investors whom diversify their portfolio via 100 or more Notes of relatively equal size have seen positive returns 3.
Check out our infographic below to see what a difference $16 billion can make!
1. Based on responses from 12,728 borrowers in a survey of 66,493 randomly selected borrowers conducted from January 1, 2015 to January 1, 2016. Borrowers who received a loan to consolidate existing debt or pay off their credit card balance reported that the interest rate on outstanding debt or credit cards was 21.90% and average interest rate on loans via Lending Club is 14.30%.
2. Statistics compiled by Lending Club from borrower stated loan purpose.
3. All data is presented for informational use only. This data is impersonal and is not directed to the specific investment objectives, financial situation or investment needs of any particular person, and should not be considered investment advice. This data is not intended to be, nor should you interpret it to be, a prediction of how any particular security or portfolio will actually perform. Lending Club Notes are not insured or guaranteed and investors may have negative returns. Individual portfolio results may be impacted by, among other things, the diversity of the portfolio, exposure to any single Borrower or group of Borrowers, and/or macroeconomic conditions. Data reflects as of December 31, 2015.
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