Lending Club Review

  • Loan Types: P2P Lending
  • Availability: USA, Small businesses
  • Securities: Unsecured
  • Loan amount: $15,000 – $300,000
  • Interest: 5.9% to 25.9%
  • Overall Rating: Superb 4.0 / 5.0

About Lending Club

Lending Club originated much of the business model that has become Peer-to-peer lending in the United States. Founded in 2006, the company became the first business of its kind to register its loans as securities with the SEC. At the end of 2014, Lending Club became the year’s biggest tech IPO, and has lent more than $7 Billion to date.

Good Rates

Interest starting from 5.9%which is one of the industries’ lowest interest rates.

Quick Approval

Approval within minutes from the completion of the application (and provision of necessary documentation).


Being the largest, and yet, fastest growing company in the industry, with a market cap of over $6Bn, means he integrity and quality are still there.

The Good and the Bad


  • Good rates. Lending Club actually has pretty low interest and APR for qualified borrowers.
  • Fast Access. You will have your best available offer in seconds, and you’ll immediately know if this is money you can afford.
  • Reliable. Lending Club has managed to build their business fast, without sacrificing integrity, convenience, or quality.
  • Quick Approval
  • Most Reputable


  • Occasional problems. Because Lending Club is a large and complex company, users report the occasional confusing situation or service lapse. By all accounts, Lending Club remains quick to resolve such problems. The company’s first earnings report (Feb. 2015) resulted in shareholder unrest. At the time of this writing, the issue is unresolved.

Which Type of Companies do They Apply to?

The only requirement that Lending Club makes public is:

  • 2 years in business
  • At least $75,000 in annual sales
  • No recent bankruptcies or tax liens
  • You own at least 20% of the business
  • Fair or better personal credit

Their customers include businesses all over the USA: convenience stores, hotels, pubs, clothing stores, hairdressers, and auto outlets.

Are Bad Credit Businesses Accepted?

Lending Club approves borrowers with a wide range of credit histories. Interest and APR rates are determined using a very specific formula. Potential borrowers are divided up into Loan Grade Categories, A through G, with subcategories 1 through 5 for each. Individuals with good credit will find the service much more affordable.

Early Repayments & Comparison

There are no penalties or fees for early repayment.

How do they compare with other companies in the industry:

Because of Lending Club’s size and success, they are able to offer loans at somewhat lower rates than you will see from other sources. Their service is strong and reliable for both borrowers and investors, the latter of whom may reliably see returns above 9% if user reports are an accurate representation.

Reputation & Feedback

Lending Club’s reputation and service are highly credible. By registering its loans with the SEC, the company chose early to give investors a strong foundation for confidence. Borrowers are similarly pleased with Lending Club, giving the company a 4.3 out of 5 with Credit Karma, even after 1500+ reviews.

A very recent drop in stock price, resulting from unprojected losses, results in a slightly lower credibility evaluation at the time of this writing, but may be resolved in coming months.

Lending Club’s rise has been charted by Forbes and the New York Times, among many others.

The world’s most famous Peer to Peer lending for businesses is that for a reason. The quality of service, ease of use, promptness, and of course the low interest make it a superb choice.

Bottom Line

Lending Club has built its business well, but future growth and longevity are yet to be seen. Borrowers (especially those with good credit) can take confidence in Lending Club’s strong lending model. Investors can enjoy similar reliability when lending money to other users, with Lending Clubs P2P Investment platform.