Lending Club

Lending Club is an online peer-to-peer lending platform that allows individual investors to lend money directly to borrowers, eliminating the need for a financial institution as the “middle man.” Founded in 2007, Lending Club is now the world’s largest P2P platform and was the first to offer loan trading on a secondary market.

Learn more about Lending Club's requirements to become an investor.

Lending Club offers a variety of account types including individual accounts, joint accounts, trust accounts, corporate accounts, and custodial/minor accounts. They also offer 401(k) rollover and retirement accounts, including Traditional IRAs, Roth IRAs, SEP IRAs, and Simple IRAs.

There is a required initial deposit of at least $1,000 to open an account. Once your account is funded, there is a $25 minimum investment per note.

Lending Club charges a 1% investor service fee on each payment received from a borrower.

Lending Club’s loan grade system helps investors identify and select notes that are most likely to align with their personal risk tolerance.

For each loan it originates, Lending Club assigns a letter grade that reflects its assessment of the credit risk for a particular loan, with Grade A being the highest and Grade E the lowest. The higher the grade, the lower the interest rate.

LC also assigns a numerical sub-grade (1-5 ranking) within each letter grade to adjust for other factors such as loan amount and loan terms.

Lending Club’s online platform itself is what we refer to as a primary market. This is where individual lenders can purchase notes (fractional investments in a loan) from newly-issued loans.

Lending Club also offers a secondary market through Folio Investing. This is where investors can buy and sell previously-issued notes. To trade notes, you must register for the Folio Note Trading Platform through your Lending Club account.

Because we automate investing for both the primary and secondary markets, Liquid P2P requires users to register with Folio and accept its API terms. There is no additional fee for buying notes on the trading platform, but Folio does charge a 1% transaction fee if you sell a note.