How loans are allocated to investors

Graphic of LendingClub Notes being allocated in different ways

Efficiently balancing supply and demand, an ever-evolving process

Our goal is to create marketplace efficiency—minimizing borrower funding times while meeting investor demand. Since we launched our platform more than a decade ago, the diversity and size of our investor base has grown along with the number of loans facilitated on our platform. As our investor base continues to evolve, so, too does our loan allocation process.

LendingClub’s loan allocation process

LendingClub’s loan allocation process is designed to make a representative sample of loans available to the investor populations described below. Loans are allocated to the platform four times daily at 6 a.m., 10 a.m., 2 p.m., and 6 p.m. PT in the following sequence.

LendingClub’s loan allocation sequence:

  • Allocation 1
    • Applies to all orders for Notes placed through automated investing with no filters applied other than grade and term.
  • Allocation 2
    • A subset of loans from allocation 2 are made available to all Note orders other than those described in step 1 above, including: manual Note orders, API Note orders, and automated investing Note orders with filters applied. The orders for this population are filled on a first come, first serve basis.
    • The remaining subset of loans from allocation 2 are made available to orders for whole loans, which are primarily placed by institutions.

An additional factor to consider:

It’s important to keep in mind that placing a Note order doesn’t mean your money will be invested instantaneously. This could be due to many factors, including the LendingClub Note investment strategy you’ve created or whether all Notes corresponding to a loan get purchased by other investors. If a loan is only partially funded, the loan will not issue until it’s fully funded by investors. In this case, you would see your Note order in “funding” status until the loan is issued, at which point your cash would be invested.

Build a portfolio of Notes that works for you

The information above regarding how loans are allocated is one factor to consider in building your portfolio of Notes. Another part of your LendingClub Note investment strategy is choosing how you invest. If setting your strategy and having LendingClub automatically execute it is your goal, automated investing may be right for you. If you want control over the specific Notes for which you are placing an order, then manually investing via logging into the website or through the API might be a better avenue.



To see historical loan listings related to the Notes program, click here. If you're wondering how to understand the various details of a loan listing, check out this glossary of terms.

Have more questions about loan allocation? Our Investor Services team is here to help. Contact us at investing@lendingclub.com or 888-596-3159.