Lending clubs are the most popular peer to peer lenders. They offer personal loans at lower interest rates. However, their strict approval requirements make them out of reach for some borrowers. Many loan products are customized just for you.
The clubs offer personal loans, business loans, and patient loans, among other types of lending services you may need in urgency. The better your credit score, the lower your rates for a loan.
What’s good is that if you pay your loan early, you aren’t charged any prepayment fee. To understand more about lending clubs, here is a review on lending clubs
Lending Club Review:
With safe interest rates, lending clubs offer a good opportunity to get higher returns. Fixed income investments are on the lower side. However, there are requirements you must meet as an investor.
- Investor Requirements
Depending on the state you live in, income requirements differ. The platform may require that you invest 10% of your net income in lending club notes. To open an account with lending clubs, there is a minimum amount to invest in a single note.
- Lending Club IRA
Lending club investment can be part of individual retirement account (IRA). Lending club self-directed plan provides this service. Opening an IRA account with 5000 dollars at a lending club secures you an opportunity to have the club pay your annual IRA fees.
However, you have to maintain a minimum of 5000 dollars for at least 12 months to keep enjoying the advantage. Choose from traditional and Roth IRA.
- Choosing Notes for Investment
There are two ways to invest with a lending club. In manual investment, you need to browse available loans and choose the most appropriate one for you. Automated investment involves setting an investment criteria. Under this option, notes are selected for you in accordance with the chosen criteria.
- Investor Fees
Lending clubs charge investors certain fees. However, the fees are only charged when an investor receives payment from a borrower. Fixed income platforms allow lending clubs to provide the most lucrative investment opportunity.
Lending Club Reviews for Borrowers
Lending clubs monitor borrowers and businesses using the credit monitoring process. To access lending club loans, you need to have a high credit score. A credit score lower than 600 will prevent you from getting a loan with these clubs.
Types of Loans Available and Terms of Payment
- Personal Loans
Lending club personal loans come in handy to meet varied needs. Ranging from financing and debt consolidation to boosting your business, to moving and relocations, personal loans can help you in many ways. In such a case, your interest rate is based on your credit grade.
Unlike other lending sources, lending clubs don’t charge application fees. However, their origination fees vary from one lender to another.
- Business Loans
Most peer to peer lenders offer business and personal loans. Although most of the loans are personal loans that can be used for businesses, the clubs also offer actual business loans. They’re even a business line of credit. If you’re running a business and need a business loan, a lending club business loan would be of help.
The loans, however, have a different rating structure from personal loans. Interest rates differ depending on the financial strength of your business. The product also attracts an origination fee.
In summary, lending clubs have simplified the loaning process. You might get busy and lack the time required to research for a good investment or credit opportunity; that’s where an automated investment or credit plan comes in. A lending club is an all-in-one credit/investment platform. With the many loan products at your disposal, you don’t have to worry in times of need.
Contact us today for the best lending club services for loans with low interest rates you can repay in no time.