REDWOOD CITY, Calif., Feb. 15, 2011 /PRNewswire/ -- Lending Club (http://www.lendingclub.com), the world's leading platform for investing in and obtaining personal loans, today announced that personal loans in amounts of up to $35,000, a $10,000 increase over the previous $25,000 limit, will now be available through Lending Club.
"The increase in maximum loan size was prompted by customer demand," said Lending Club CEO Renaud Laplanche. "We believe that continued softness in the home market is making it difficult for even people with great credit to obtain home equity loans. With our $35,000 loans, it's easy for creditworthy borrowers who want to make home improvements, like adding solar panels or a swimming pool, to fund their projects with a fixed-rate personal loan through Lending Club."
Personal loans of more than $20,000 through Lending Club have historically performed better than smaller loans, with investors receiving a 10.30(i) percent Net Annualized Return, compared to the platform wide return of a 9.68 percent Net Annualized Return(ii). Lending Club investors can fund fractions of hundreds of individual loans to build a diversified portfolio of Notes. As borrowers pay back loans each month, investors collect principal and interest that can be reinvested in new Notes or withdrawn.
Personal loans obtained through Lending Club are available with flexible terms and fixed interest rates that start at 6.78 percent APR for creditworthy borrowers(iii), well below the average starting APR of 13.24 percent offered on credit cards to similar borrowers(iv), saving hundreds or even thousands over the life of the loan. Since 2007, low interest rates offered through Lending Club have saved creditworthy borrowers as much as $5 million in annual interest(v). In addition to home improvements, personal loans through Lending Club can be used to pay off higher-interest credit cards, and for other major purchases including vacations, weddings and small business expansions.
Lending Club connects investors and creditworthy borrowers, eliminating the cost and complexity of traditional bank lending to offer investors better returns and borrowers better rates. More than 22,000 personal loans have been funded through Lending Club since the company as founded in 2007, for a total of more than $220(vi) million in total loan originations.
About Lending Club
Lending Club is an online platform that enables the issuance of and investment in consumer loans. Lending Club brings together investors and creditworthy borrowers -- eliminating the cost and complexity of traditional bank lending -- to offer borrowers better rates and investors better returns. Lending Club was recently recognized as one of the 20 "Breakthrough Ideas for 2009" by Harvard Business Review, has been nominated for "Top 100 Innovators" by The Industry Standard, is on the JMP Hot 100 list, and the Always On Global 250 Top Private Companies list. In addition Lending Club won the Webby Award in 2008 for the "Best Banking Website". Founded in 2006, Lending Club is headquartered in Redwood City, CA. More information is available at: http://www.lendingclub.com.
Additional information about Lending Club is available in the prospectus for Lending Club's notes, which can be obtained on Lending Club's website at https://www.lendingclub.com/info/prospectus.action
(i) As of February 10, 2011 for all $20,000+ loans issued since May 2007. Information can be found at https://www.lendingclub.com/info/statistics-performance.action
(ii) NAR calculated as of Feb. 3, 2011, and is based on the return of the entire platform since inception, your returns may vary. Currently only residents of the following states may invest in notes: CA, CO, CT, DE, FL, GA, HI, ID, IL, KY (accredited investors only), LA, ME, MN, MO, MS, MT, NH, NV, NY, RI, SC, SD, UT, VA, WA, WI, WV, or WY.
(iii) Rate based upon A1 (best) credit grade. APRs range from 6.78% to 25.41%. All loans are issued by WebBank, an FDIC insured Utah chartered industrial bank located in Salt Lake City, Utah. Borrowers must be US citizens or permanent residents and at least 18 years old. Valid bank account and social security numbers are required. All loans are subject to credit approval. Loans are not issued in IA, ID, IN, ME, MS, ND, NE, or TN.
(iv) Source for average starting credit card APR for consumers with "Excellent Credit" calculated using headline rates on Credit Cards offered to borrowers with "Excellent Credit" at www.creditcards.com as of February 9, 2011.
(v) Based on the difference between Lending Club's two week average interest rate of 11.36% for 36 month loans as of February 10, 2011 vs. 13.67% for "all accounts assessed interest" as reported in the FRB G19 release of February 7, 2011 on all loans issued since inception to February 10, 2011.
(vi) As of February 10, 2011
SOURCE Lending Club