What Investor Payments and Fees Are Required?

Last Updated June 8, 2023

Interest and principal payments

LendingClub pays Notes investors principal and interest equal to their pro rata share of loan payments tied to a Note, less any fees associated with the receipt of payments.

What’s accrued interest, and when is it credited to an account?

Interest accrues on your Notes during the payment cycle before members make a loan payment. When members make their monthly payment, the accrued interest is realized and deposited in your account, and interest starts to accrue again.

Why did the interest rate change on one of my Notes?

When members enter active military duty, they may be eligible to have the interest rate on their loans reduced to 6.0% under the Servicemembers Civil Relief Act (SCRA). Under the SCRA, any interest above 6% on eligible borrowers’ loans must be permanently forgiven, and the member’s monthly payment must be reduced by the amount of interest saved during the period of active duty. The 6% interest rate cap remains in place until the member’s active-duty service tour ends. At the end of the tour, the member’s interest rate reverts back to the original contracted rate.

The 6% rate cap is available only to eligible members who received their loan before being called to active military duty, and only if their tour of duty affects their ability to pay the loan at the originally contracted interest rate.

Service charges

Investors pay LendingClub a service fee of about 1% of all loan payments made within 15 days of the due date. If members miss a payment, investors don’t pay a service fee.

To protect investor returns without discouraging members from prepaying their loans, we limit the service fee to 1% of the borrower’s regular monthly payment in the first 12 months a Note is issued, even if the member chooses to pay more than the monthly amount due. This way, if a member pays off their loan—or makes significant progress to pay off their loan—within the first 12 months, investors aren’t burdened with a large fee and keep more of their investment.

For example, if you held a Note that had a contractual monthly payment of $300, and the member prepaid $4,000 one month in the first 12 months of issuance, you would be charged only a $3 service fee (1% of $300). After a loan has been issued for 12 months or more, you’re charged a 1% service fee on the total prepayment amount in the month the prepayment was made. If a member made a similar prepayment of $4,000 after the first 12 months, you would pay a $40 service fee.

Collection fees

When members miss payments and loans become late, we make a reasonable effort to recover the money owed to investors. When we recover a missed payment, we deduct collection fees from the recovered amount based on these criteria:

  • Up to 40% on collected payments on a delinquent loan involving litigation, less legal fees and other expenses for any litigation costs

  • Up to 30% on all collected payments on a delinquent loan not involving litigation

  • Other collection fees charged by LendingClub or a third-party collection agency (for example, when a loan is charged off)

LendingClub doesn’t charge a collection fee if we don’t recover a payment, and collection fees aren’t charged in excess of the recovered amount.

You may be charged additional fees if you invest in a LendingClub IRA.

Fee calculation and rounding

We calculate all fees to the tenth decimal place. In your account, the fee will display rounded to the nearest whole cent. To see your fees calculated to the tenth decimal place, hover your cursor over the dotted line below the rounded number.

Because of rounding or truncation, you may see inconsistencies in your account, such as a $0.00 fee or a service fee of $0.01 with no apparent change in your account balance. Here’s an example:

In the chart above, a fee of $0.0052222222 is rounded in the Displayed Fee field to $0.01. If we consider only the displayed account balance and the displayed fee, the balance after fees would be $508.99. The actual account balance, less fees, however, would be $509.0003333333 ($509.0055555555 - $0.0052222222)—which, rounded to the nearest cent, is still $509.00.

We deduct fees when funds are deposited into your account or immediately after. If the fees are deducted after the payment is deposited, the fees will show a “pending withdrawal” status until the fees are deducted.

LendingClub Resources

Related Resource Center
Want to consolidate high-interest debt, renovate your home, or manage an unexpected expense? A personal loan could help.
Sep 25, 2023
Top 4 Reasons to Get a Personal Loan
Find out how your savings stack up against other people your age—and what you can do to grow your savings at any stage of life.
Sep 18, 2023
gethelp couple
There are several reasons your credit score may have dropped. Here are six solid ways to focus your efforts and start rebuilding your score.
Sep 12, 2023
Having a money plan in place before you turn in your resignation can make the transition smoother. Learn ways to prepare your finances before you go.
Sep 4, 2023
Young man relaxing in an orange hammock by a misty lake holding a cup of coffee, looking at laptop on his lap.
Home repair costs have increased. Knowing upfront what you can expect to pay for certain types of improvements can help you prepare financially and save you a lot of stress.
Aug 28, 2023
knowing common home repair costs can help you prepare for the future
Related Impact
From groceries and diapers to Halloween costumes for pets, nearly 60% of American consumers prefer to shop online for everyday items that make life more convenient, comfortable, and enjoyable. And with rising prices showing no signs of stopping anytime soon, we’re pleased to introduce StackitTM from LendingClub Bank—a new browser extension that automatically finds and rewards eligible members with coupons and cash back for extra savings at more than 15,000 favorite online retailers.
Nov 13, 2022
blog header stackit 765x430 v1-1
Even in today’s low-yield, high-inflation environment, it’s essential to keep a certain amount of money in an easy-to-access checking or savings account for things like daily household and emergency expenses, or to meet short-term financial goals.
Oct 2, 2022
LendingClub Rewards Checking Nationally Certified as Trusted, Afforda
Since 2007, LendingClub has been on a mission to deliver a world-class experience to all our members. This month we took a moment to reflect on the more than four million members who have chosen LendingClub as their partner to help them reach their financial goals.
Apr 19, 2022
Illustration of large number 4 and letter M made up of colorful, tiny illustrations of ethnically diverse people
In March 2022, we hosted our first quarterly webinar where we celebrated our one-year anniversary as a digital marketplace bank. 
Mar 6, 2022
LendingClub completed the acquisition of Radius Bank in February 2021. At that time, in addition to the direct-to-consumer deposit business, we inherited a fintech partner program, and several lending businesses. As we reach the one-year anniversary of the acquisition, and in conjunction with the conclusion of a strategic review of our business operations, we have made the decision to discontinue certain businesses that don’t fit our mission.  
Jan 2, 2022
Man in blue button up shirt and glasses smiling
Related FAQ's
A member may change their due date. Loans with LendingClub Bank have due dates automatically set to the day of the month the loan was issued.
Jun 7, 2023
LendingClub Bank issues and services loans and collects principal and interest payments from members.
Jun 7, 2023
LendingClub charges an investor service fee of 1% of the number of borrower payments received by the payment due date or during applicable grace periods.
Jun 7, 2023
Delinquencies are a natural component of investing in Notes. When members fall behind on their payments, LendingClub makes significant efforts to contact them, collect outstanding payments, and bring the loans back to "current" status.
Jun 7, 2023
In some cases, we arrange payment plans with members to gradually bring their loans back to "current" status.
Jun 7, 2023
Related Glossary
{noun} A type of credit that allows the borrower to make charges and payments against a set borrowing limit, paying interest only on outstanding balances.
Sep 6, 2023
{noun} The amount of unpaid interest that has accumulated as of a specific date, either on a loan or an interest-bearing account or investment. 
Mar 21, 2023
{noun} The total annual cost to borrow money, including fees, expressed as a percentage.
Mar 21, 2023
A debt that is written off as a loss because the financial institution or creditor believes it is no longer collectible due to a substantial period of nonpayment.
Feb 7, 2023
{noun} An interest rate that remains the same for a set time, usually for the life of the loan.
Feb 4, 2023

Unless otherwise specified, all credit and deposit products are provided by LendingClub Bank, N.A., Member FDIC, Equal Housing Lender (“LendingClub Bank”), a wholly-owned subsidiary of LendingClub Corporation, NMLS ID 167439. Credit products are subject to credit approval and may be subject to sufficient investor commitment. Credit union membership may be required. Deposit accounts are subject to approval. Deposit products are FDIC-insured up to $250,000 per depositor, per ownership category.

"LendingClub" and the "LC" symbol are trademarks of LendingClub Bank.

© 2023 LendingClub Bank. All rights reserved.