LendingClub, a major player in the personal loan market, offers loans ranging from $1,000 to $60,000, with funding often available within a single day, according to recent assessments.
The lender’s annual percentage rates (APRs) currently span a wide range, from 6.53% to 35.99%, dependent on applicant creditworthiness. Even as competitive rates are available for borrowers with excellent credit, those with fair credit may still qualify, a factor that distinguishes LendingClub from some other lenders, according to a review by Buy Side. However, the company’s origination fees—charged as a percentage of the loan amount—can be substantial, particularly for applicants with lower credit scores.
LendingClub no longer operates a peer-to-peer lending model, instead offering direct loans funded by the company itself. Borrowers can choose repayment terms between two and seven years. A direct pay option is available for debt consolidation, allowing funds to be sent directly to creditors, and may qualify borrowers for an APR discount of up to 5%.
According to data analyzed by Credible.com, LendingClub approves relatively large loan amounts compared to many of its competitors, with average approved loans reaching nearly $23,000 for borrowers with fair to excellent credit. The lender also provides loans for a variety of purposes, including debt consolidation, unexpected expenses, and planned costs, with some exceptions.
Origination fees, ranging from 0.00% to 8.00% of the loan amount, are determined by the applicant’s credit rating and are only charged when the loan is disbursed. As of May-July 2024, example loan terms included a $10,246 loan at 14% interest with a 5% origination fee, resulting in an APR of 18% and a monthly payment of $493. A $25,235 loan at 9% interest with a 6% origination fee had an APR of 11% and a monthly payment of $450.
LendingClub’s minimum loan amount of $1,000 makes it suitable for smaller, short-term financial needs. The company does not permit cosigners but does allow co-borrowers. Minimum credit score requirements are not explicitly disclosed on the company’s website.
