Lending Club | Start Investing - Lending Club

Investors have invested over $28 Billion through Lending Club

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Investing through Lending Club is similar to investing in bonds1 and can deliver...

4-6%

Solid Returns

Lending Club Notes can earn between 4% to 6% per year.2 You build the portfolio that fits your investment goals. Each Note represents a fraction of an underlying loan: you can invest in fractions of loans in $25 increments.

97%

Positive Returns

97% of investors who invest in 100+ Notes of relatively equal size have seen positive returns.3 With $2,500, you can spread your investment across 100 Notes.

2-5%

Monthly Cash Flow

Investors receive 2% to 5% (median 4.1%) of their total investment back in cash payments to reinvest or withdraw as borrowers make their monthly cash payments.4

AS RECOGNIZED BY:

Account Types Available

Investment

Start investing today for solid returns.3

Retirement

Secure your retirement. Several types of tax-advantaged IRAs are offered.

How it Works

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Lending Club brings together quality borrowers looking for lower rates and investors looking for attractive returns. You can easily invest in a diversified portfolio of qualified borrower loans – with $2,500, you can spread your investment across 100 Notes.5 Our Automated Investing tool allows you to select your investment criteria and our tool does the work for you. Or, you can browse loans and place orders manually.

Adjusted Net Annualized Return

Average Interest Rate

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Learn more about this chart

Description of chart: This chart shows the historical performance by grade for all issued loans.

This chart includes all loans that were issued 18 months or more before the last day of the most recently completed quarter. The historical returns data in the chart is updated monthly.

Adjusted NAR models potential losses on a loan prior to that loan being charged off. Adjusted NAR is calculated using the formula described here. It is based on monthly borrower payments actually received net of service and collections 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 grade and loan status over a 9-month period. Historical returns are not a promise of future results. Lending Club Notes are not insured or guaranteed and investors may have negative returns. Individual portfolio results may be impacted by, among other things, the diversity of the portfolio, exposure to any single borrower or group of borrowers, as well as macroeconomic conditions.

Lending Club assigns a grade (from A to G) to each loan based on borrower credit quality and risk attributes. Grade A has less risk and lower expected returns, whereas Grade G has more risk and higher expected returns.3

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1 Lending Club Notes are similar to traditional unsecured bonds in that investors receive regularly scheduled cash flows at predetermined dates. Lending Club Notes deliver payments monthly, while most bonds pay their coupon semi-annually (with the exception of bond funds, which can also pay monthly). Neither is secured by collateral and neither provides promise of payment; Lending Club does not guarantee payment of the Notes or the corresponding borrower loan, and our obligation to make payments is limited to an amount equal to the investor's pro rata share of amounts received with respect to the corresponding borrower loan for that Note, net of any fee charges. Lending Club Notes deliver exposure to a fraction of the underlying borrower loan obligation, while traditional bonds are bought in their entirety (with the exception of investments in bond funds). Each borrower loan underlying a Lending Club Note is given an internally assigned grade, while traditional bonds are rated by a ratings agency - but both are based on the amount of risk inherent to the instrument. Unlike traditional bonds, Lending Club Notes are fully amortizing and distribute the investor's pro rata share of principal and interest within each payment. Borrowers can also prepay the loans corresponding to Lending Club Notes. Traditional bonds are structured with bullet maturities and the entirety of the principal is promised to be delivered at maturity - not over time during the life of the bond. The loans that correspond to Lending Club Notes are debt obligations of individual consumers, while traditional bonds are debt obligations of corporations, governments, agencies, etc. in most cases. Unlike many bond instruments (e.g. high yield bonds), the terms of a borrower loan underlying a Lending Club Note do not limit the amount of debt that the borrower can incur (other than the impact that additional, future debt may have on the borrower's ability to repay the loan), while the terms of a high yield bond may, among other prohibitive covenants, limit the amount of additional debt that the underlying corporate borrower can incur. Tax treatment of Lending Club Notes may also differ from traditional bonds and bond funds.

This information is not intended to be investment, tax or legal advice. Lending Club Notes are not guaranteed or insured, and investors may lose some or all of the principal invested. Individual portfolio results may be impacted by, among other things, the diversity of the portfolio, 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. You should consult your financial, tax or legal advisor if you have any questions or need additional information. Actual results may vary.

2 4.87% - 6.74% average historical returns for loan grades A through C as of June 30, 2017. To be included in the historical returns ("Historical Returns") calculation, a Note must have been originated prior to December 31, 2015. 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. Historical returns are based on actual borrower payments received each month, net of fees, actual charge offs, recoveries, and estimated future losses. To estimate future losses, we apply a charge-off rate estimate to the outstanding principal of any loans that are past-due but not charged off. The charge-off rate estimate is based on historical charge-off rates by loan status over a 9-month period. Historical performance is not a guarantee of future results. Lending Club Notes are not insured or guaranteed and investors may have negative returns. Individual portfolio results may be impacted by, among other things, the size and diversity of the portfolio, the exposure to any single Note, borrower or group of Notes or borrowers, as well as macroeconomic conditions. Notes are offered by prospectus filed with the SEC and investors should review the risks and uncertainties described in the prospectus prior to investing in the Notes.

3 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.

4 Data as of June 30, 2017. Lending Club retail investors have historically received 2% ‐ 5% monthly cash flow. Retail investor accounts are defined as those accounts with at least $2,500 in outstanding principal balance in any given month. Monthly cash flow for any given account is calculated by dividing an account's proceeds for any given month (scheduled principal & interest and additional payments, reduced by any charged-off Notes and fees) by the outstanding principal amount in such month. The monthly cash flow values reported above are based on the 12-month trailing average of the 10th and 90th percentile monthly cash flow values for all retail investors in the 12-month period ending June 30, 2017. Individual results may vary based on grade and term composition of an investor's investment strategy. Historical performance is not a guarantee of future results. This information is not intended to be investment advice. Lending Club Notes are not guaranteed or insured, and investors may lose some or all of the principal invested. Notes are offered by prospectus filed with the SEC and investors should review the risks and uncertainties described in the prospectus prior to investing. Actual results may vary.

5 Learn more about diversification. This information is not intended to be investment advice. Lending Club Notes are not guaranteed or insured, and investors may lose some or all of the principal invested. Notes are offered by prospectus filed with the SEC and you should review the risks and uncertainties described in the prospectus prior to investing. You should consult your financial advisor if you have any questions or need additional information. Actual results may vary.