12 Million More Reasons to Use Lending Club
When a lender gets an investment from someone besides the government, people take notice. Today it was announced that LendingClub is getting $12 million in venture capital money to help it keep growing. That’s big news when traditional financial institutions are taking billions just to stay in business.
I’ve posted before about LendingClub, the peer-to-peer lending network. Unlike traditional banks, they help people loan money directly to one another via their network, and hope to get better rates to both lenders and borrowers in the proceess.
They’ve grown in both members and as a company. They’ve reportedly doubled in size over the past 5 months and have filed with the SEC, both very important steps. But they also now have some major financial backing as they have closed a $12 million round of funding, which gives them a lot of strength as a lender and plenty of room to grow.
I really see places like LendingClub as the future of lending. The recent news of bank colapses and near colapses (like Citibank’s stock falling below a dollar) has put traditional banking on notice. But like a traditional bank, they offer a variety of loans, from debt consolidation loans to auto loans to home improvement loans.
The rates paid to vary on a sliding scale according to the one’s credit score, with the best loan rates being well below the national average. As of this writing, LendingClub reports rates starting at 7.88% with national averages for personal loans being at 11.43% and credit cards at 13.64%. So why not check it out?
Already use LendingClub or another peer-to-peer lending service? Tell us about it in the comments below…
Source: TechCrunch
