Lending Club is the leading online marketplace that provides financial solutions to investors and borrowers. The company offers innovative platform that connects investors to borrowers. Online financial platform offered by the company makes borrowing and investing easier and more rewarding for the individuals.
The operational costs of the online company are lower as compared to traditional banks and financial institution. As a result, the company is able to offer low cost financial solutions to individual investors and borrowers.
Investors benefit from joining Lending club in the form of earning monthly returns on a diversified portfolio of loans. The investment loans are graded by the company from A to G with each grade representing the borrower's financial position and underlying risk. The historical returns by the loans have been from 5.19% to 8.88% as on June 2015.
The investment amount can easily be diversified across different grade loans. Investors can also transfer the earnings to a 401(k) and IRA (Traditional and Roth) retirement account. The custodian of the Lending Club's IRA account is Self Directed IRA Services Inc. which is a subsidiary of Horizon Bank. Investors won't have to pay annual fee of $100 that IRA management company charges to its direct customers.
Individuals can borrow personal and business loans at low rates through Lending Club. They can use the loan amount to consolidate the loans by paying off high interest loans such as credit card debt, student debts, and others.
On average borrowers report that the rates on the loan obtained from Lending Club was about 7% lower than the rates on their existing loans.
In some cases borrowers were able to obtain rates that were 32% lower than their existing loans. Borrowers can use the personal loans can be used for various purposes. Some of the ways that the personals loans can be utilized include paying off credit cards, consolidating debt, paying home maintenance or improvement expenses, and pooling of lands.
Business loans that are offered by the Lending Club range from 1-5 years duration. The loan is repaid in the form of fixed installment payment amount without any penalty for early payments. Business owners can also obtain business line of credit for payment of expenses.
Lending Club also offer patient financing option that is easy and affordable for most people. The loans can be used for various medical procedures such as dental implants, fertility treatment, weight loss surgery, and hair restoration. The fees charged on the loans obtained from Lending Club are lower as compared to traditional loans.
Lending Club offers an innovative platforms for investors and borrowers. Investors invest in loan amounts that are offered to the borrowers. The company policies encourage safe lending and borrowing practices that safeguards interest of all the parties. The plan and pricing options offered by Lending Club are affordable for most people. This has resulted in increased popularity of its financial services both among investors and the borrowers.