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How does Lending Club make money?

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We collect fees from both borrowers and investors.
If you are a borrower, you will pay a one-time fee that ranges from 1.11% to 5.00% of the loan amount, depending on your loan grade (A-G) and term.  For more information, please visit our Rates & Fees page.

If you are an investor, you will pay a service fee equal to:

1) one percent (1%) of the amount of any payment received within 15 days of the payment due date, or

2) a collection fee of 18% of the amount recovered if the loan is 16 or more days late and no litigation is involved, or

3) if litigation is involved, a collection fee of 30% of hourly attorneys’ fees plus costs, up to the amount collected. 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: 30% if the loan is less than 60 days past due and no more than 90 days from the date of origination; 35% in all other cases, except litigation; 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."