Investors provide funding
Borrowers
make monthly payments
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Notes offered by prospectus filed with the SEC. This information should not be considered investment advice. Past performance is no guarantee of future results. Consider reviewing the prospectus with a financial advisor prior to investing. Information presented for illustrative purposes only and is not a report of actual performance of an identified portfolio of Notes.
Explore additional investing topics that may inform your investing decisions at Lending Club
Learn about who the borrowers are and how they
get loans through the Lending Club platform
Learn more about Lending Club's business, its investment offering, and platform performance
What is Lending Club offering as an investment?
How do investors ensure they do not invest in multiple Notes corresponding to the same loan?
When are new loans listed on the site?
I placed an order and some of my money was returned to my account. Why?
How is a transfer of money to or from my account initiated?
Are Lending Club Notes liquid?
What tax documents does Lending Club issue?
Are earnings on Lending Club Notes taxable?
How do I track my overall rate of return?
How long does it take to invest my funds with Automated Investing?
Can I still place manual orders if I have an Automated Investing account?
Lending Club is America's #1 credit marketplace, transforming banking to make it more efficient, transparent and consumer friendly.
We operate at a lower cost than traditional banks and pass the savings on to borrowers in the form of lower rates and to investors in the form of solid returns.
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1 This depiction is a summary of the processes for obtaining a loan or making an investment. All loans made by LendingClub Bank, N.A., 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, 71 Stevenson, Suite 300, San Francisco, CA 94105.
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Lending Club assigns a grade (from A to D) to each loan based on borrower credit quality and underlying risk.
The lowest interest rates are assigned to the least risky grades, which reflect the potentially lower loss rates (lower rate of charged off loans) and lower volatility in returns.1
Reward and Risk
1 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.
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This information is not intended as investment advice. You should consult your financial advisor if you have any questions or need additional information.
step3step5As borrowers pay back their loans, investors get a stream of cash each month that can provide a solid return on investment.
Lending Club Notes are not insured or guaranteed and investors may have negative returns.
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Let's say you build a portfolio of loans paying you an average of 14% interest per year.
Even borrowers with great credit can default, and this portfolio may see charge offs of about 8% per year on average.
Lending Club charges a 1% fee to process the payments the borrowers make on their loans.
So after accounting for defaults and fees, you could earn 5% on average per year.
Investments in Lending Club Notes can provide:
Historical Returns by Grade1:
AGrade
4.83%
BGrade
5.77%
CGrade
6.41%
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1As of September 30, 2020. To be included in the Historical Returns calculation, a Note must have been originated prior to March 31, 2018. 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. It is based on actual borrower payments received each month, net of service 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 status over a 9-month period. Historical returns are not intended as a promise of future results. Individual portfolio results may be impacted by, among other things, the diversity of the portfolio, the 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 in the Notes.
Lending Club Notes are offered by prospectus filed with the SEC. Please consider the risks of investing.
1What is Lending Club?
2Identify Quality Borrowers
3Assign Grades And Interest Rates
4Invest in fractions of Loans
5Receive Monthly cash flow
6When borrowers miss payments
7Here's the Basic math
8Historical Returns
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