Lending Club has been sweeping the investment world – and the borrowing universe – at the same time.
And why not?
Who wouldn’t be interested in a financial facility that enables investors to earn more than the going rate on their money, while borrowers pay less?
Lending Club is an online peer-to-peer (P2P) lending platform that takes the banker out of banking. Investors lend money directly to borrowers through the site, enabling both to benefit from the rate of interest that’s established for each loan.
And just as important, the entire transaction happens online, eliminating the need for sometimes embarrassing face-to-face meetings that are common with bank loans. It’s a win-win as both investor and borrower benefit from the Lending Club process.
As of March 31, 2015, Lending Club has issued loans totaling well in excess of $9 billion. This includes more than $1.6 billion issued in just the last quarter.
Let’s take a look at how Lending Club works for both an investor and a borrower.