Lending Club is a peer-to-peer lending and investing website. As a Lending Club user, you can seek personal loans that are funded by other users on the site. Or, vice versa, you can choose to be an investor, loaning money to Lending Club borrowers.
Technically, Lending Club is not a straight peer-to-peer lending/investing process. There is still a financial institution acting as an intermediary; in this case that is a bank called WebBank. WebBank technically makes the loans to Lending Club borrowers. (See who else WebBank works with.)
Why would you use Lending Club?
- If you are seeking a loan, Lending Club may be a way to get that loan at a lower interest rate than from a bank or other lender.
- If you are an investor, you may be able to get a higher return on your money than you’d get from other investments you might make.