SAN FRANCISCO, July 14, 2011 /PRNewswire/ -- Lending Club, (http://www.lendingclub.com), the leading platform for investing in and obtaining personal loans, announced that a record $20 million in prime consumer loans were issued through Lending Club in June (i). A combination of individual and institutional investors invested in these loans. Additionally, the Lending Club platform has passed $300 million in total loan originations and $25 million in interest paid to investors (ii) since its inception.
The $20 million monthly loan origination record established in June 2011 is a 7 percent increase over the previous month's originations (May 2011) and double Lending Club's origination volume in June 2010. The $300 million in total loan originations milestone comes six months after Lending Club reached $200 million in total loan originations and a mere three months since the platform reached $250 million in total loan originations.
"We have set new loan origination records in 10 of the last 12 months, and are seeing a continued acceleration of our business fueled by our ability to offer lower rates to consumers and strong, predictable returns to our investors," said Lending Club CEO Renaud Laplanche.
Focusing on prime and super-prime borrowers with a strong credit history has allowed Lending Club to provide investors with steady returns, even during the economic downturn. Since inception, the platform has generated a 9.64 percent Net Annualized Return (iii), and 100 percent of investors who have purchased at least 800 consumer notes from unique borrowers through the Lending Club platform have earned positive returns (iv).
Lending Club investors create diversified portfolios of Prime Consumer Notes according to their risk and yield preferences. Lending Club lets investors choose loans individually or based on specific criteria, and the platform's transparent approach to consumer lending gives investors access to complete data on every loan ever issued. The average Lending Club borrower, as of July 1, 2011, has a $70,000 personal income and a credit score of 716.
"Our investors have discovered what banks knew all along: prime and super-prime consumer loans offer high returns, with low volatility," said Laplanche.
About Lending Club
Lending Club is the leading 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 is an award-winning concept that has been previously recognized in 2010 as the Best Investment website by WebAwards, one of the 20 "Breakthrough Ideas" by Harvard Business Review, 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 and 2011 for the "Best Banking Website." Founded in 2006, Lending Club is headquartered in San Francisco, 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) All loans issued by WebBank, an FDIC insured Utah-chartered industrial bank.
(ii) Total interest paid to investors as of July 7, 2011.
(iii) NAR calculated as of July 7, 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 and WY.
(iv) 800 Notes can be purchased with $20,000. All data is as of July 7, 2011. The availability of Notes is dependent on your investment criteria. There is no guarantee that you will be able to purchase 800 or more Notes promptly, if at all. The foregoing is not directed to the specific investment objectives, financial situation or investment needs of any particular person and should not be considered investment advice. You should consider reviewing the prospectus with a financial advisor prior to investing. Past performance is no guarantee of future results.
SOURCE Lending Club