Education Center | LendingClub (2024)

Lending Club is America's #1 credit marketplace, transforming banking to make it more efficient, transparent and consumer friendly.

We operate at a lower cost than traditional banks and pass the savings on to borrowers in the form of lower rates and to investors in the form of solid returns.

¹ This depiction is a summary of the processes for obtaining a loan or making an investment. All loans made by LendingClub Bank, N.A., Member FDIC, Equal Housing Lender. Investors do not invest directly in loans. Investors purchase Member Dependent Notes from Lending Club. Individual borrowers must be a US citizen or permanent resident and at least 18 years old. Valid bank account and social security number/FEIN are required. All loans are subject to credit review and approval. Your actual rate depends upon credit score, loan amount, loan term, credit usage and history. LendingClub notes are issued pursuant to a Prospectus on file with the SEC. You should review the risks and uncertainties described in the Prospectus related to your possible investment in the notes. Currently only residents of the following states may invest in Lending Club notes: AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, ND, NE, NH, NJ, NV, NY, OK, OR, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, or WY. Our mailing address is: Lending Club, 71 Stevenson, Suite 300, San Francisco, CA 94105.

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Lending Club assigns a grade (from A to D) to each loan based on borrower credit quality and underlying risk.

The lowest interest rates are assigned to the least risky grades, which reflect the potentially lower loss rates (lower rate of charged off loans) and lower volatility in returns.¹

Reward and Risk

¹ Historical performance is not a guarantee of future results. Lending Club Notes are not guaranteed or insured, and investors may lose some or all of the principal invested.

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You can invest in small fractions of borrower loans, called Notes.
You can spread your investment across many borrower loans, quickly and easily diversifying your investment.

This information is not intended as investment advice. You should consult your financial advisor if you have any questions or need additional information.

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As borrowers pay back their loans, investors get a stream of cash each month that can provide a solid return on investment.

Lending Club Notes are not insured or guaranteed and investors may have negative returns.

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Let's say you build a portfolio of loans paying you an average of 14% interest per year.

Even borrowers with great credit can default, and this portfolio may see charge offs of about 8% per year on average.

Lending Club charges a 1% fee to process the payments the borrowers make on their loans.

So after accounting for defaults and fees, you could earn 5% on average per year.

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Investments in Lending Club Notes can provide:

Solid Returns
Low Volatility
Monthly Cash Flow

Historical Returns by Grade¹:

AGrade
4.83%
BGrade
5.77%
CGrade
6.41%

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¹As of September 30, 2020. To be included in the Historical Returns calculation, a Note must have been originated prior to March 31, 2018. Historical Returns are Lending Club's adjusted net annualized returns (Adjusted NAR) for Notes with Grades A through C. Adjusted NAR is calculated using the formula described here. It is based on actual borrower payments received each month, net of service fees, actual charge offs, recoveries, and estimated future losses. To estimate future losses, we apply a loss rate estimate to the outstanding principal of any loans that are past-due but not charged off. The loss rate estimate is based on historical charge off rates by loan status over a 9-month period. Historical returns are not intended as a promise of future results. Individual portfolio results may be impacted by, among other things, the diversity of the portfolio, the exposure to any single Note or group of Notes, as well as macroeconomic conditions. Notes are offered by prospectus filed with the SEC and you should review the risks and uncertainties described in the prospectus prior to investing in the Notes.
Lending Club Notes are offered by prospectus filed with the SEC. Please consider the risks of investing.

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