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What is Lending Club offering as an investment?

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As an investor, you are not making loans directly to borrowers.  Instead, you are investing in a Member Payment Dependent Note, or “Note,” which corresponds to a member loan made through the Lending Club platform.  If you hold Notes in your Lending Club account, Lending Club will distribute to you your pro rata portion of the principal and interest payments, if any, Lending Club receives from borrowers on the corresponding loans, net of its 1.00% service charge.
Lending Club assigns a grade (A–G) to each Note that reflects Lending Club’s assessment of the credit risk of the corresponding loan.  The stated interest rate on each Note varies depending on the credit risk of the corresponding loan.  Notes with greater credit risk are assigned higher interest rates.  Investors may use loan grades and other criteria to build a portfolio of Notes that matches their risk tolerance and investment objectives.*

*The Notes are described in a Prospectus filed with the Securities and Exchange Commission.  You should read the Prospectus before investing. The information here is not intended to be investment advice, guidance, or a guarantee of the performance of any Note or portfolio.  Lending Club Notes are not guaranteed or insured and investors may have negative returns.  



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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."