Earn Solid Returns
Investment 401(k) Rollovers IRAs
A Financial Innovation.
Lending Club is the leading platform for investing in and obtaining personal loans. Since inception we have facilitated over $1,735,896,000 in loans to prime credit borrowers. Our borrowers obtain loans at terms they find more attractive than those offered by their traditional bank or credit cards. Loans are funded by investors, circumventing the cost and complexity of traditional banking and cutting down intermediation costs.
What are Prime Consumer Notes?
Prime Consumer Notes are fixed-income investments that generate monthly cash flow in the form of payments of principal and interest. Generally, investors choose to invest in hundreds or thousands of Notes to diversify and benefit from more consistent performance. Notes are graded A1 through G5 and carry an interest rate commensurate with their risks, so you can build a portfolio that fits your investment objectives.
Quality Borrowers.
We approve fewer than 10% of the loan applications, based on stringent credit criteria designed to focus on the most creditworthy borrowers. The majority of our members use the loans to pay off high interest rate loans, most often credit card debt.
As of May 13, 2013, the average Lending Club borrower shows the following characteristics:
- 705 FICO score
- 15.8% debt-to-income ratio (excluding mortgage)
- 14.6 years of credit history
- $70,941 personal income (top 10% of US population) 2
- Average Loan Size: $13,096
Solid Returns.
Lending Club Notes have provided a Net Annualized Return by grade between 5.47% for A grade Notes and 11.77% for G grade Notes. You can choose the grade or grades that fit your investment goals. Net Annualized Return3 per grade net of defaults and fees from inception to May 13, 2013. Prospectus filed with the SEC.
Monthly Cash Flow.
Investors receive monthly cash payments of principal and interest. For example, if you invested $100,000 in 36-month, grade C Notes providing an aggregate 9.5% net annualized return, you would receive approximately $3,200 each month in cash payments to reinvest or withdraw.
Low Volatility.
Lending Club Notes have provided 23 consecutive quarters of steady, positive returns.6
Who invests at Lending Club?
As of May 13, 2013, over 56,042 investment accounts have funded nearly $1,735,896,000 in loans and received over $150,732,500 in interest payments. On average, as of May 13, 2013, investment accounts have grown by 3 to 4 times year after year as investors expand their portfolio with Prime Consumer Notes. Lending Club has attracted many types of investors, from professional fixed income investors like family offices and insurance companies to individuals saving for retirement, with accounts ranging from a few thousand to millions of dollars.
1 Return calculations based on accounts that have invested in 800 or more unique borrowers. 800 Notes can be purchased with $20,000. All data as of May 13, 2013. The availability of Notes/unique borrowers is dependent on your investment criteria. There is no guarantee that you will be able to invest in 800 or more Notes/unique borrowers promptly, if at all. The foregoing is not directed to the specific investment objectives, financial situation or investment needs of any particular person and should not be considered investment advice. You should consider reviewing the prospectus with a financial advisor prior to investing. Past performance is no guarantee of future results.
3 To be included in the Net Annualized Returns calculation, a Note must have been originated at least 3 months prior to the calculation date.
4 Net Annual Return of individual grades as of May 13, 2013.
5 Top 50% and Bottom 50% are dollar-weighted averages of individual loan performances for each grade calculated from either the best performing half or the worst performing half, respectively, of all loans outstanding in each grade from inception to February 13, 2013 (the "Period"), measured from inception through May 13, 2013 (see note 3). In practice, if a portfolio of Notes was created from the worst performing half of the loans in a specific grade issued during the Period, the return would be roughly equivalent to the Bottom 50% of that specific grade as depicted in the chart above. Conversely, if a portfolio of Notes was created from the best performing half of the loans in a specific grade issued during the Period, the return would be roughly equivalent to the Top 50% of that specific grade as reported in the chart above.
6 Based on platform performance as of May 13, 2013.
