Rates & Fees
All Lending Club rates and fees are listed below. There are no hidden fees or charges, and fees are only charged as a result of an accepted and approved loan. We have a "no fine print" policy!
We strive to create an easy, safe and private environment for people to borrow or lend money at better rates than they would from banks and credit card companies. The reason for better rates is that loans are being funded by individuals and organizations, including Lending Club itself, that don't have the administrative costs of banks. The mechanism for setting a fair interest rate is complex: it involves a proper assessment of the risk associated with each loan (based on the borrower's credit history, current situation, income, debt and other factors), an understanding of the volatility associated with each level of risk, and a proper reward for that volatility. We have access to large amounts of information and historical data from the credit bureaus, which puts us in a unique situation to set attractive, fair and equitable interest rates. Rates also depend on the amount of the loan (with larger loans bearing higher rates).
Interest Rates
Each loan request made by a borrower is attributed a Lending Club grade ranging from A1 to G5 and a corresponding interest rate:
| Loan Grade | Interest Rate |
|---|---|
| A1 | 7.37% |
| A2 | 7.68% |
| A3 | 8.00% |
| A4 | 8.32% |
| A5 | 8.63% |
| B1 | 9.70% |
| B2 | 10.01% |
| B3 | 10.33% |
| B4 | 10.64% |
| B5 | 10.96% |
| C1 | 11.28% |
| C2 | 11.59% |
| C3 | 11.91% |
| C4 | 12.22% |
| C5 | 12.54% |
| Loan Grade | Interest Rate |
|---|---|
| D1 | 12.86% |
| D2 | 13.17% |
| D3 | 13.49% |
| D4 | 13.80% |
| D5 | 14.12% |
| E1 | 14.43% |
| E2 | 14.75% |
| E3 | 15.07% |
| E4 | 15.38% |
| E5 | 15.70% |
| F1 | 16.01% |
| F2 | 16.33% |
| F3 | 16.65% |
| F4 | 16.96% |
| F5 | 17.28% |
| Loan Grade | Interest Rate |
|---|---|
| G1 | 17.59% |
| G2 | 17.91% |
| G3 | 18.22% |
| G4 | 18.54% |
| G5 | 18.86% |
Borrower Fees
Borrower Processing Fee
We assess a Processing Fee for providing the services of underwriting the loan and matching lenders to borrowers. This Processing Fee is determined by the final loan grade of the listing as displayed in the following table:
| A | B | C | D | E | F | G |
|---|---|---|---|---|---|---|
| 0.75% | 1.50% | 2.00% | 2.50% | 2.75% | 3.00% | 3.00% |
This Processing Fee is included in the Annual Percentage Rate calculation and is subtracted from the loan proceeds prior to disbursement. For example, the final amount credited to the borrower's bank account for a $5,000 loan with a 1.00% Processing Fee of $50 will be $4,950. Lending Club does not receive any Processing Fee if the loan listing does not close and fund.
Unsuccessful Payment Fee
When an automatic payment fails and is rejected by the borrower's bank, an Unsuccessful Payment Fee may be charged to the borrower to cover the cost Lending Club incurs on the transaction. This could happen if there is insufficient balance in the borrower's bank account, the bank account has been closed or if the account is otherwise suspended. Each attempt to collect the monthly payment is considered a separate transaction, so an Unsuccessful Payment Fee may be assessed for each failed attempt. The amount of an Unsuccessful Payment Fee is $15.
Late Payment Fee
When a borrower's payment is late after a 15-day grace period, a Late Payment Fee may be assessed on the 16th day to compensate lenders for the delay. This fee is prorated and then passed on to the lenders. Lending Club does not receive any proceeds from Late Fees. The amount of a Late Payment Fee is the greater of 5.00% of the unpaid installment amount, or $15. This fee may be charged only once per late payment.
Lender Fees
Processing Fee
Lending Club receives a Processing Fee from lenders on a monthly basis for managing the loan payments and maintaining the account portfolios. The Processing Fee for lenders is one percent (1%) of all amounts paid by the borrowers to the lenders.
Collection Fee
When a payment on a loan is over 30 days delinquent, the loan is sent to Lending Club's contracted collection agency for collection. The agency charges a fee based on a pre-negotiated percentage of the payment collected based on the age of the delinquency. The Collection Fee will be deducted from the amount received by the agency prior to being remitted to Lending Club.
Our collection agency will charge a Collection Fee that is a percentage of the amount recovered during the period as shown in the following chart:
- 30–60 days past due
- 15%
- 61–90 days past due
- 10%
- 91–120 days past due
- 7%
- After charge-off
- 25%
- Litigation
- 30%
