lendingclub.com

Lending Club – requirements for new lenders

wiseclerk 1 Comment

As reported in the previous post, Lendingclub.com is open for new lenders. However lenders have to meet two requirements:

Resident in one of 15 approved states:

The Notes are presently being offered and sold solely to residents of the states of Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Louisiana, Minnesota, Mississippi, Montana, New York, Rhode Island, South Dakota, West Virginia, and Wisconsin, and are not presently being offered or sold to residents of any other state, the District of Columbia, any other territory or possession of the United States, or any foreign country.

Compliance with Financial Suitability Standards and Investment Limits

I confirm that I (a) have an annual gross income of at least $70,000 and a net worth (exclusive of home, home furnishings and automobile) of at least $70,000; or (b) have a net worth (determined with the same exclusions) of at least $250,000. In addition, I agree that I will not purchase notes in an amount in excess of 10% of my net worth, determined exclusive of my home, home furnishings and automobile.

I think Lendingclub probably will be adding more states to the list of approved states over the next months.

Lending Club hits 10 million US$ loan volume

wiseclerk 1 Comment

P2P Lending service Lendingclub.com, which launched last May, today surpasses 10 million US$ in loans. While the total amount is still much lower then the loan volume of competitor Prosper.com (currently over 120 million US$ loan volume) the growth acceleration of Lendingclub is really impressive.

Rob Garcia, Director Web production at Lending Club, told P2P-Banking.com:

This milestone confirms the validity of our approach to person-to-person lending, but more importantly, our value proposition to our borrowers and lenders.  Borrowers are realizing 20-30% better rates than going through the banks, while our lenders enjoy 12% average returns.  We are working to take this concept to a larger audience, so $10M is just a mile marker in our marathon.

The growth can be seen in this chart. For Prosper loan volume compare chart on this page. So basically in February Lending Club has originiated close to the amount Prosper did, when taking into account only those loans that would fit the minimum criteria of Lending Club's 640 FICO score and <30% DTI.

The statistic information at Lendingclub.com shows that over 1200 loans have been issued. So far few loans are late, but since most of the loans are very young, it is to early to tell which level of defaults will have to be expected. The statistic page also shows that Lendingclub declined over 80 million US$ in loan applications.

If you sign up via this link, you get a 25 US$ bonus by Lending Club (and I am paid a referral fee).

Half percent more interest at Lendingclub

wiseclerk

Today for all new loans the interest rates at Lendingclub.com increase by 0.5 percent. At Lendingclub, unlike other p2p lending sites, the platform not the borrower sets the interest rate (based on credit grade). The increase was in reaction to rising borrower demand after Lendingclub eliminated state loan rate caps last week by going nationwide.

As a lender you can profit furthermore from two current promotions at Lendingclub. You get a 5% cash bonus if you lend 5,000 US$ or more by Feb. 3, 2008 (max. 20,000 per lender). Plus you get a 25 US$ signup bonus, if you sign up through this referral link.

Questions? Suggestions? Use the Lendingclub forum.