Investors don't have to pay any fees and they can choose from
different loan grades to meet their risk and returns criteria.
Those different loan grades, don't mean a thing.
Lending Club categorizes borrowers into seven
different loan grades: A through G. Within each loan grade there are five sub-grades meaning there are 35 total loan grades for borrowers from A1 down to G5.
Not exact matches
Modeled returns for each
grade and
loan term are net of the annual loss rate, which is
different for each
grade and term.
Investors purchase Notes corresponding to
different loans,
grades, and terms, then receive monthly principal and interest payments as borrowers pay off their
loans.
There are over 30
different criteria to choose from — typical filters are interest rates (presented as
loan grades),
loan terms (36 or 60 month
loans),
loan purpose, length of employment,
loan size and credit score.