How peer-to-peer lending works | LendingClub

A smarter way to invest and borrow.

LendingClub HQ

How does

an online credit

marketplace

work?

LendingClub uses technology to operate its online credit marketplace at a lower cost than traditional lending programs, passing the savings on to borrowers in the form of lower rates, and offering investors the potential for competitive returns. In fact, borrowers who are just paying the minimum on their credit cards could save nearly $1,300 over the course of their personal loan through LendingClub.1


By providing borrowers with better rates, LendingClub has earned among the highest satisfaction ratings in the financial services industry.2

Here's how it works:

  • Customers interested in a loan complete a simple application at LendingClub.com.
  • We leverage innovative data and technology to screen borrowers, facilitate the transaction with appropriate interest rates, and service the loan.
  • Qualified applicants receive loan offers in just minutes and can evaluate their options with no impact to their credit score.
  • Investors select the loans they want to invest in based on their own risk tolerance, investment portfolio goals, and time horizon.

Better for Borrowers

We cut the cost and complexities of traditional bank loans and pass the savings on to borrowers.

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  • Fast, easy online application
  • Low, fixed rates
  • Convenient, fixed monthly payments
  • 3- or 5-year terms
  • No prepayment penalties
  • Friendly service
How it works:
  1. Check your rate—with no impact to your credit score
  2. Select a loan offer
  3. Watch as people invest in your loan
  4. Get your money in as little as a few days
  5. Prepay anytime with no payment penalties

Check Your Rate

Better for Investors

Quickly and easily invest in a diversified portfolio of loans with the goal of earning a competitive return.

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  • Historical returns of 3-8%3
  • Consumer credit exposure can be a portfolio diversifier
  • Spread risk across multiple loans
  • Multiple account types, including: Taxable, retirement, corporate
How it works:
  1. Open a taxable account with as little as $1,000
  2. Quickly and easily build a portfolio by investing in Notes in $25 increments
  3. Receive principal and interest monthly as borrowers make payments on their loans
  4. Reinvest your monthly payments or withdraw the cash

Start Investing

Your privacy is protected.

LendingClub strongly protects your personal and financial information. Investors and borrowers never know each other's identities. We only share the information necessary to complete your requested transactions. See our Privacy Policy for full details.

We're committed to transparency.

We're proud to share information about our company and services. Our website contains background information about LendingClub and our statistics webpages provide loan and investor performance details, including all Issued, funded, and rejected loans.

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