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How does Lending Club make money?

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We collect fees from both borrowers and investors.
For more information on borrower fees, please visit our
 Rates & Fees page.

If you are an investor, the following fees apply:

  • a service fee of one percent (1%) of the amount of any borrower payments received by Lending Club, and
  • a collection fee of:
1. 18% of borrower payments received as a result of successful collection efforts if no litigation is involved, or
2. 30% of hourly attorneys' fees, plus costs, if litigation is involved.

When borrowers miss payments and loans become late, Lending Club uses best practices from the banking industry to bring delinquent loans back to “current” status. 

Please note that the collection fee described above is a reduced collection fee, which may be discontinued at any time. The normal collection fee is a percentage of the amount recovered: up to 35% if a collection action must be taken in respect of a loan and no litigation is involved; or 30% of hourly attorneys' fees in the event of litigation, plus costs.



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Financial Innovation

Borrowers hurt by the credit squeeze and investors looking to boost their returns are increasingly turning to the same place: peer-to-peer lending.


Featured Borrower


"The interest rate on my loan through Lending Club is a third less than what I was paying before, and it’s very satisfying to know that there is an end date for being done with my debt."