Lend and Borrow at The Lending Club

The Lending Club – www.myinstantoffer.com – is a US peer-to-peer lending company based in San Francisco, California and the world’s largest online peer-to-peer lending platform where borrowers meet lenders, where borrows  can get a loan, and investors can purchase notes backed by payments made on loan. It was one of the first companies to champion the “marketplace” lending model and is also amongst the few online lending companies whose shares are also traded publicly.

Lending Club assesses potential borrowers and services the loans but the decision to lend is finalized by one or more investors. If you want to borrow, you must have a minimum credit score of 100. Borrowers usually have several years of credit history, a low debt-to-income ratio and a relatively high income.

The website i.e. MyInstantOffer.com assigns every borrower a grade based on their credit history and income data. The grade determines the range of interest rates you will be charged and helps investors decide whether to give you a loan. The grades are only visible to investors.

Lending Club Application Procedure

Lending Club’s application process at www.myinstantoffer.com is quite lengthy, involving a number of steps which have been detailed as follows:

  1. You are required to fill out a preliminary online application for the amount you wish to borrow
  2. Lending club then carries out a soft credit check which has no effect on your credit score
  3. If your application is approved, you will be provided with different loan offers to choose from. The offers will state the interest rate, loan terms and monthly payment amount
  4. Once you have chosen the offer you prefer, you will be required to fill out another loan application, you will be assigned a grade and your loan request will be listed on the site. This allows the investors to decide whether they want to fund your loan and the funding amount. However, they cannot view your personal information
  5. If the investors decide to fund at least 60% of your loan, Lending Club will issue you the funded amount. If the funded amount is less than 60%, the company will offer you the funded amount and give you the option to re-list the remaining amount as a new loan
  6. Your listing expires if no investor is willing to fund your loan in 30 days after which you can re-apply
  7. Once the loan is funded, Lending Club confirms your identity and bank information and may also carry out a hard credit check where you will be required to provide more documents. This might affect your credit score
  8. Once the verification process is complete, the loan will be transferred to your bank account within four working days. The entire application process is usually completed within a week but can take more than that

Myinstantoffer.com – Lending Club’s credit standards

  • Minimum credit score required: 600
  • Minimum gross income required: Not provided, but generally high income
  • Minimum credit history: Not provided, but generally several years
  • Limitations: Aimed at good-credit borrowers
  • Maximum debt-to-income ratio: Not provided, but generally low ratio

Lending Club’s lending terms

  • APR range: 5.99% to 35.89% (minimum APR of 4.99% for borrowers with excellent credit)
  • Minimum loan amount: $1,000
  • Maximum loan amount: $40,000
  • Loan duration: 3 years or 5 years
  • Time to receive funds: Usually 7 days

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