Lending Club determines a borrower's loan grade through factors which include a borrower's credit history, current situation, income, debt., and amount of loan. Each loan grade is then assigned a corresponding interest rate as listed below:
Lending Club Rates:
Loan Grade A1: 7.37%
Loan Grade A2: 7.68%
Loan Grade A3: 8.00%
Loan Grade A4: 8.32%
Loan Grade A5: 8.63%
Loan Grade B1: 9.45%
Loan Grade B2: 9.76%
Loan Grade B3: 10.08%
Loan Grade B4: 10.39%
Loan Grade B5: 10.71%
Loan Grade C1: 11.03%
Loan Grade C2: 11.34%
Loan Grade C3: 11.66%
Loan Grade C4: 11.97%
Loan Grade C5: 12.29%
Loan Grade D1: 12.61%
Loan Grade D2: 12.92%
Loan Grade D3: 13.24%
Loan Grade D4: 13.55%
Loan Grade D5: 13.87%
Loan Grade E1: 14.18%
Loan Grade E2: 14.50%
Loan Grade E3: 14.82%
Loan Grade E4: 15.13%
Loan Grade E5: 15.45%
Loan Grade F1: 15.76%
Loan Grade F2: 16.08%
Loan Grade F3: 16.40%
Loan Grade F4: 16.71%
Loan Grade F5: 17.03%
Loan Grade G1: 17.34%
Loan Grade G2: 17.66%
Loan Grade G3: 17.97%
Loan Grade G4: 18.29%
Loan Grade G5: 18.61%
Wednesday, April 23, 2008
Thursday, April 17, 2008
New Borrowing Terms from Prosper
Prosper has announced the ability to set a national maximum lender rate at 36% (well above the previous maximum rate in some states which was set at 6% or lower) by using WebBank. Prosper has this to say about their loan origination program:
"All loans originated through the Prosper marketplace are made by WebBank, a Utah-chartered Industrial Bank. Prosper provides services to WebBank in connection with the origination of such loans and Prosper services loans made to Prosper borrowers on behalf of registered Prosper lenders who purchase such loans. All loans are fixed rate, unsecured, 3-year, fully amortizing with simple interest."
The new Prosper Borrowing Terms are listed below:
Loan amount:
$1,000 - $25,000
Maximum interest rate:
36%*
Closing fee:
($25 minimum)
AA: 1% closing fee
A - B: 2% closing fee
C - HR: 3% closing fee
Late fee:
(15-day grace period)
The greater of 5.00% of the unpaidinstallment amount, or $15**
Failed payment fee:
$15
* Texas residents are limited to 10% interest for personal use loans and 18% for business use loans. South Dakota residents cannot borrow at this time.
** Texas residents' late fee is 5% of the unpaid installment amount.
"All loans originated through the Prosper marketplace are made by WebBank, a Utah-chartered Industrial Bank. Prosper provides services to WebBank in connection with the origination of such loans and Prosper services loans made to Prosper borrowers on behalf of registered Prosper lenders who purchase such loans. All loans are fixed rate, unsecured, 3-year, fully amortizing with simple interest."
The new Prosper Borrowing Terms are listed below:
Loan amount:
$1,000 - $25,000
Maximum interest rate:
36%*
Closing fee:
($25 minimum)
AA: 1% closing fee
A - B: 2% closing fee
C - HR: 3% closing fee
Late fee:
(15-day grace period)
The greater of 5.00% of the unpaidinstallment amount, or $15**
Failed payment fee:
$15
* Texas residents are limited to 10% interest for personal use loans and 18% for business use loans. South Dakota residents cannot borrow at this time.
** Texas residents' late fee is 5% of the unpaid installment amount.
Saturday, April 12, 2008
News from Lending Club
Lending Club has ceased accepting new lender registrations or new commitments from existing borrowers effective immediately. The borrowing side of Lending Club continues to function as it has in the past. The announcement issued by Lending Club is below:
Lending Club has started a process to register, with the appropriate securities authorities, promissory notes that may be offered and sold to lenders through our site in the future. Until we complete the registration process, we will not accept new lender registrations or allow new commitments from existing lenders. We will continue to service all previously funded loans during this period, and lenders will be able to access their accounts, monitor their portfolios, and withdraw available funds without changes. The borrowing side of our site will remain generally unaffected by this registration process; borrowers can continue to apply for loans and new loans posted after April 7, 2008, will be funded and held only by Lending Club. Until the registration process is completed, the company will undergo a quiet period and will not be able to respond to press and other inquiries about Lending Club or the registration process during that time.
Lending Club has started a process to register, with the appropriate securities authorities, promissory notes that may be offered and sold to lenders through our site in the future. Until we complete the registration process, we will not accept new lender registrations or allow new commitments from existing lenders. We will continue to service all previously funded loans during this period, and lenders will be able to access their accounts, monitor their portfolios, and withdraw available funds without changes. The borrowing side of our site will remain generally unaffected by this registration process; borrowers can continue to apply for loans and new loans posted after April 7, 2008, will be funded and held only by Lending Club. Until the registration process is completed, the company will undergo a quiet period and will not be able to respond to press and other inquiries about Lending Club or the registration process during that time.
Friday, April 4, 2008
Lending Club Performance Data
The latest data from Lending Club indicates lenders are currently being paid and mostly on time. The data derived from Mat 24, 2007 to March 28, 2008 shows a default rate of 0.00% and a late loan rate of 0.64%. A late loan is defined as payments over 45 days old. Even more revealing is that the percentage of late loans for loans graded "A" stands at 0.00%. The highest percentage of late loans was for loans graded "C" which came in at 1.61%. The Lending Club platform has not yet stood the test of time or economic recession, but the early returns for lenders are solid.
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