Lending Club

Here are the rates that our members are currently paying based on their credit grades. How can these rates be so low?

In short, we cut the middleman out by letting lenders fund the loan requests directly. This results in better rates for borrowers because our lenders don't have the administrative costs of banks. Banks usually pay up to 5% on savings accounts and the average rate for credit cards that carry an outstanding balance is 14.35%¹ (compare). The difference between these two rates comes mostly from the cost of collecting deposits from the public on one side and extending loans on the other side. Lending Club has created a platform that lets individual lenders and organizations (including Lending Club itself) fund the loans of individual borrowers. This simplifies the lending process and eliminates transaction costs that have kept the cost of borrowing higher at traditional financial institutions.

The other contributing factor to our great rates is that we believe lending communities experience fewer defaults than banks because they are founded on the premise that people are less likely to default to a community of people they feel close to versus a faceless bank.

What will your rate be? There's only one way to find out!