How Peer Lending Works | LendingClub

A smarter way to invest and borrow.

Lending Club HQ

How does

an online credit



Lending Club uses technology to operate a credit marketplace at a lower cost than traditional bank loan programs, passing the savings on to borrowers in the form of lower rates and to investors in the form of solid returns. Borrowers who used a personal loan via Lending Club to consolidate debt or pay off high interest credit cards report in a survey that the interest rate on their loan was an average of 24% lower than they were paying on their outstanding debt or credit cards. 1

By providing borrowers with better rates, and investors with attractive, risk-adjusted returns, Lending Club has earned among the highest satisfaction ratings
in the financial services industry. 2

Innovation transforms lending

Lending Club is America’s largest marketplace connecting borrowers and investors, where consumers and small business owners lower the cost of their credit and enjoy a better experience than traditional bank lending, and investors earn attractive risk-adjusted returns. 4

Here's how it works:

  • Customers interested in a loan complete a simple application at
  • We leverage online data and technology to quickly assess risk, determine a credit rating and assign appropriate interest rates. Qualified applicants receive offers in just minutes and can evaluate loan options with no impact to their credit score
  • Investors ranging from individuals to institutions select loans in which to invest and can earn monthly returns

The entire process is online, using technology to lower the cost of credit and pass the savings back in the form of lower rates for borrowers and solid returns for investors.

Better for Borrowers

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

Learn more

  • Easy online application
  • Low fixed rates
  • Fixed monthly payments
  • Flexible terms
  • No prepayment penalties
  • Friendly service
How it works:
  1. Check your rate - it's fast and free
  2. Choose your offer, if given
  3. Watch as people invest in your loan
  4. Fast funding directly to your bank account
  5. Convenient, automated fixed monthly payments
  6. Prepay anytime with no fees

Check Your Rate

Better for Investors

At Lending Club you can earn attractive risk-adjusted returns by quickly and easily investing in a diversified portfolio of loans.

Learn more

  • Solid returns with historical returns
    by Grade A-C of 4.95% to 7.10%. 5
  • Monthly cash flow
  • Simple and straightforward
  • Easy to diversify across many Loans
  • 401(k) rollover and retirement accounts available
How it works:
  1. Open an account and transfer as little as a $0.01 minimum initial deposit.
  2. Quickly and easily build a portfolio by investing in a range of Loans in increments as little as $25
  3. Receive monthly payments of principal and interest as borrowers repay their loans
  4. Reinvest payments or withdraw

Start Investing

Your privacy is protected.

Lending Club strongly protects your personal and financial information. Investors and borrowers never know each other's identities; we will never sell, rent or otherwise distribute your information; and we only share what's 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 our services. Our website contains background information about Lending Club, and our statistics area gives a wealth of information on loan and investor performance. We also offer a downloadable file containing the credit and performance details on all loans eligible for funding by public investors.

1 Based on responses from 7,715 borrowers in a survey of 122,975 randomly selected borrowers conducted from 1/1/16 - 3/31/17. Borrowers who received a loan to consolidate existing debt or pay off their credit card balance reported that the interest rate on outstanding debt or credit cards was 20% and average interest rate on loans via Lending Club is 15.2%. The origination fee ranges from 1% to 6% and the average origination fee is 5.49% as of Q1 2017. Best APR is available to borrowers with excellent credit.

2 All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage & history. Source for savings % and satisfaction scores: Lending Club borrower surveys, 2013 – 2017.

3 This depiction is a summary of the processes for obtaining a loan or making an investment. All loans made by WebBank, Member FDIC, Equal Housing Lender. Investors do not invest directly in loans. Investors purchase Member Dependent Notes from Lending Club. Individual borrowers must be a US citizen or permanent resident and at least 18 years old. Valid bank account and social security number/FEIN are required. All loans are subject to credit review and approval. Your actual rate depends upon credit score, loan amount, loan term, credit usage and history. LendingClub notes are issued pursuant to a Prospectus on file with the SEC. You should review the risks and uncertainties described in the Prospectus related to your possible investment in the notes. Currently only residents of the following states may invest in Lending Club notes: AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, ND, NE, NH, NJ, NV, NY, OK, OR, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, or WY. Our mailing address is: Lending Club, 595 Market, Suite 200, San Francisco, CA 94105.


5 4.95% - 7.10% average historical returns for loan grades A through C as of March 31, 2017. To be included in the historical returns ("Historical Returns") calculation, a Note must have been originated prior to September 30, 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.

DISCLAIMER: The information transmitted is intended only for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any review, re-transmission, dissemination or other use of, or taking of any action in reliance upon this information by persons or entities other than the intended recipient is prohibited. If you received this in error, please contact the sender and destroy any copies of this document and any attachments.

Facebook pixel is disabled.
Investor tracking is disabled.