LENDING CLUB Review: Peer to Peer Lending

Lending Club announced that it has signed a definitive agreement to acquire Radius Bancorp, and its wholly owned subsidiary Radius Bank, (together “Radius”) valued at 185 million USD. LendingClub says Combining Radius and LendingClub will create a digitally native marketplace bank at scale with the power to deliver an integrated customer experience, enabling consumers to both pay less when borrowing and earn more when saving.

Lending Club charges investors a fee of 1% of the amount of payments received from the borrower within 15 days of the due date and the borrower pays fees of between 1 and 5% depending on their solvency degree and, Finally, say that investors can invest from $ 25.

Lending Club offers loans between $ 1,000 to $ 35,000 for consumers and between $ 15,000 to $ 300,000 for businesses.

Despite this small scandal, Lending Club remains in the gap and is very well capitalized, and in case of bankruptcy they have implemented a backup system through which an intermediary company would take charge and continue to lead all operations that have open until expiration.

The growth of Lending Club has been exponential since it was created and currently has 45% of the total market. He raised more than 900 million dollars in his last public offer made in 2014 and despite this the price of the stock has since fallen by 72%.
The fault of that fall is due to the fact that the company was recently involved in a scandal surrounding the founder Renaud Laplanche and for which he was forced to resign after an internal investigation.

Lending Club was founded in 2007 and is a veteran p2p platform that has become one of the largest in the world with more than 20 billion dollars in loan issuance and this has been possible because it offers loans to consumers as well as SMEs with repayment terms ranging from 36 to 60 months.