Essay on How The Lending Club Operates A Credit Marketplace

1512 Words Dec 4th, 2016 7 Pages
The Lending Club operates a credit marketplace that allows peer-to-peer investing and lending. The way it operates allows the Lending Club to offer far lower rates than banks offer. If you are looking for a personal loan, then there is a good chance that the Lending Club will be able to offer you a better deal than your bank. In addition, the Lending Club may be more willing to approve your lending than your bank is. If you are using Lending Club to get a consolidation loan to pay off your debts, then you may pay an average of 30% less than what you were paying on your credit cards.

H3 The Lending Club Peer-To-Peer Lending Business

The peer-to-peer business is risk adjusted in a way that means investors get a return on their investments, and borrowers are able to enjoy lower rates. The marketplace function means that both investors and borrowers have some control over interest rates. The investor may set a rate that he or she wishes to receive, and the borrower may search the rates to find the lowest rate available to him or her.

There are now quite a few peer-to-peer lending companies in the US, in Canada, the US and Australia, and this is fantastic because it takes business from banks and puts it back into the hands of private investors like you and me. Lending Club is a very large P2P marketplace that connects investors with borrowers. The Lending Club allows private citizens (consumers) to borrow from the P2P marketplace, and they allow small businesses to borrow…

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