LendingClub Service
A LendingClub Service is a U.S.-based personal lending service.
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- See: Fintech, Secondary Market, Unsecured Debt.
References
2018
- https://investorjunkie.com/peer-to-peer-lending/lending-club-review/
- Lending Club is a P2P platform that allows you to invest in other people's debt with possible higher returns than traditional fixed-income investments. However, investing with Lending Club is a long-term commitment and not without its risk of borrower default.
- Rating: 8.5/10
- Commissions & Fees: 8/10
- Customer Service: 8/10
- Ease of Use: 8.5/10
- Diversification: 9/10
- Amount of Deals: 9/10
- Due Diligence: 8/10
- Best For:
2018
- (Wikipedia, 2018) ⇒ https://en.wikipedia.org/wiki/Lending_Club Retrieved:2018-8-3.
- LendingClub is a US peer-to-peer lending company, headquartered in San Francisco, California. It was the first peer-to-peer lender to register its offerings as securities with the Securities and Exchange Commission (SEC), and to offer loan trading on a secondary market. Lending Club is the world's largest peer-to-peer lending platform. [1] The company claims that 15.98 billion in loans had been originated through its platform up to December 31, 2015.
Lending Club enables borrowers to create unsecured personal loans between $1,000 and 40,000. The standard loan period is three years. Investors can search and browse the loan listings on Lending Club website and select loans that they want to invest in based on the information supplied about the borrower, amount of loan, loan grade, and loan purpose. Investors make money from interest. Lending Club makes money by charging borrowers an origination fee and investors a service fee.
Lending Club also makes traditional direct to consumer loans, including automobile refinance transactions, through WebBank, an FDIC-insured, state-chartered industrial bank that is headquartered in Salt Lake City Utah. The loans are not funded by investors but are assigned to other financial institutions.
The company raised $1 billion in what became the largest technology IPO of 2014 in the United States. Though viewed as a pioneer in the fintech industry and one of the largest such firms, Lending Club experienced problems in early 2016, with difficulties in attracting investors, a scandal over some of the firm's loans and concerns by the board over CEO Renaud Laplanche's disclosures leading to a large drop in its share price and Laplanche's resignation.
- LendingClub is a US peer-to-peer lending company, headquartered in San Francisco, California. It was the first peer-to-peer lender to register its offerings as securities with the Securities and Exchange Commission (SEC), and to offer loan trading on a secondary market. Lending Club is the world's largest peer-to-peer lending platform. [1] The company claims that 15.98 billion in loans had been originated through its platform up to December 31, 2015.
- ↑ Schumpeter Peer review The Economist January 5, 2013; Accessed March 22, 2013.
2018b
- https://www.lendingclub.com/public/how-peer-lending-works.action
- QUOTE: Lending Club uses technology to operate a credit marketplace at a lower cost than traditional bank loan programs, passing the savings on to borrowers in the form of lower rates and to investors in the form of solid returns. Borrowers who used a personal loan via Lending Club to consolidate debt or pay off high interest credit cards report in a survey that the interest rate on their loan was an average of 24% lower than they were paying on their outstanding debt or credit cards.
By providing borrowers with better rates, and investors with attractive, risk-adjusted returns, Lending Club has earned among the highest satisfaction ratings in the financial services industry. …
- QUOTE: Lending Club uses technology to operate a credit marketplace at a lower cost than traditional bank loan programs, passing the savings on to borrowers in the form of lower rates and to investors in the form of solid returns. Borrowers who used a personal loan via Lending Club to consolidate debt or pay off high interest credit cards report in a survey that the interest rate on their loan was an average of 24% lower than they were paying on their outstanding debt or credit cards.