Note Trading Platform

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IMPORTANT UPDATE: The secondary market for trading Notes is discontinuing and the last day you will be able to buy or list a Note for sale on this market is August 26, 2020. If you wish to trade Notes on the secondary market, click here to learn more about key dates to keep in mind.

Notes are highly risky and only limited information is available about them. They are suitable only for investors whose investment objective is speculation. You could lose most or all of the money you invest in them. Folio Investing has no role in the original issuance of the Notes and is not responsible for and does not approve, endorse, review, recommend or guarantee the Notes or the accuracy, reliability, or completeness of any data or information about the Notes. See the Important Disclosures page for additional important information.

Lending Club Account
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Rate information

Lending Club’s interest rates take into account credit risk and market conditions. The final interest rate for each loan grade is the result of the following equation:

Lending Club Base Rate + Adjustment for Risk & Volatility

The Adjustment for Risk & Volatility is designed to cover expected losses and provide higher risk-adjusted returns for each loan grade increment from A1 to G5.

The loan grade is the result of a formula that takes into account not only credit score, but also a combination of several indicators of credit risk from the credit report and loan application. All loans have either a 36- or 60-month term, with fixed interest rates and equal payments.


Table 1. Loan Grades

Loan Grade Sub-Grade Lending Club Base Rate Adjustment for Risk & Volatility Interest Rate
A 1 5.05% 3.41% 8.46%
2 5.05% 3.97% 9.02%
3 5.05% 4.51% 9.56%
4 5.05% 5.14% 10.19%
5 5.05% 5.76% 10.81%
B 1 5.05% 8.28% 13.33%
2 5.05% 8.97% 14.02%
3 5.05% 9.66% 14.71%
4 5.05% 10.35% 15.40%
5 5.05% 11.03% 16.08%
C 1 5.05% 12.25% 17.30%
2 5.05% 13.19% 18.24%
3 5.05% 14.07% 19.12%
4 5.05% 14.90% 19.95%
5 5.05% 15.69% 20.74%
D 1 5.05% 17.57% 22.62%
2 5.05% 19.50% 24.55%
3 5.05% 22.00% 27.05%
4 5.05% 24.60% 29.65%
5 5.05% 25.94% 30.99%
E 1 5.05% 23.85% 28.90%
2 5.05% 23.87% 28.92%
3 5.05% 23.90% 28.95%
4 5.05% 23.92% 28.97%
5 5.05% 23.95% 29.00%
F 1 5.05% 24.30% 29.35%
2 5.05% 24.64% 29.69%
3 5.05% 25.12% 30.17%
4 5.05% 25.60% 30.65%
5 5.05% 25.70% 30.75%
G 1 5.05% 25.74% 30.79%
2 5.05% 25.79% 30.84%
3 5.05% 25.84% 30.89%
4 5.05% 25.89% 30.94%
5 5.05% 25.94% 30.99%

Lending Club Proprietary Model Ranking

If an application passes the initial credit screening criteria, the characteristics of the application are assessed by Lending Club’s proprietary scoring models which can either decline or approve the applicant. The initial scoring model provides the application with a score, which when combined with the applicant’s FICO score and certain other credit attributes arrives at a Model Rank. The Model Rank is based upon an internally developed algorithm which analyzes the performance of borrower members and takes into account FICO score, credit attributes, and other application data. The Model Rank is between 1 and 25 and corresponds to a Base Risk Sub-Grade as follows:



Table 2. Initial Loan Sub-Grade Assignment

Model Rank Base Risk Sub-Grade
1 A1
2 A2
3 A3
4 A4
5 A5
6 B1
7 B2
8 B3
9 B4
10 B5
11 C1
12 C2
13 C3
14 C4
15 C5
16 D1
17 D2
18 D3
19 D4
20 D5
21 E1
22 E2
23 E3
24 E4
25 E5

Loan Grades and Risk Modifiers

We then modify the Base Risk Sub-Grade using credit risk indicators including:

  • Requested loan amount
  • Loan maturity: 36 or 60 months

to arrive at a final Sub-Grade.



Table 3. Requested Loan Amount Modifier by Base Risk Grade

Requested Loan Amount
Base Risk Grade / Modifier
A B C - E
<$5,000
-1 -1 -1
$5,000 - <$25,000
0 0 0
$25,000 - <$30,000
0 -2 -2
$30,000 - <$35,000
-2 -2 -3
$35,000
-3 -4 -4

Table 4. Loan Term Modifier

Loan Term (Maturity) Loan Grade Risk Modifier
36 months  A - G  0
60 months  A - G  -8 to -4

Basic Requirements for Borrowers

Currently, to borrow through Lending Club, borrowers must be US citizens or permanent residents, or be in the United States on valid long term visa; and be at least 18 years old with a verifiable bank account.

To qualify for a loan, a number of factors are considered including, but not limited to:

  • Information provided on the loan application
  • Information provided by credit bureaus
  • Credit score, which predicts the likelihood that borrowers will make on time payments until loans are fully repaid
  • Debt-to-income ratio
  • Credit history length, the number of other accounts currently open, and usage and payment history with those accounts
  • Recent credit activity, including how many other credit inquiries have been initiated over the past six months

At this time,Lending Club unable to accept loan applications from residents of the following: Iowa and Idaho.

Click here to apply for a loan

Notes are highly risky and only limited information is available about them. They are suitable only for investors whose investment objective is speculation. You could lose most or all of the money you invest in them. Folio Investing has no role in the original issuance of the Notes and is not responsible for and does not approve, endorse, review, recommend or guarantee the Notes or the accuracy, reliability, or completeness of any data or information about the Notes.

Notes are listed based on the presumption that all Borrower payments have been applied and that Note has not gone into default. If a Borrower payment is received after the Note has been listed but before the sale transaction has settled, or if the Borrower moves into default or charge-off, the listing or any pending transaction will be canceled. Principal and interest payments made on a Note prior to the time you purchase the Note on the Note Trading Platform may, in certain circumstances, be reversed. Any such reversal will be debited from your account. If you have no available funds in your account when this occurs, a negative cash balance may result. You should consider this possibility before bidding on any Notes. See the Important Disclosures page for additional important information. Read our Privacy Policy here.

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