Beginning July 30th, Lending Club has raised average rates charged to borrowers by 0.5% in response to increased interest rates charged by mainstream lenders.
Investors will be seeing increased rates, and already the current net annualized return of all Lending Club investors was over 9.5%.
Lending Club has continued to see increasing number of loan requests from prime borrowers and believes that the higher rate remains competitive. The very best, grade A loans, according to a company press release have actually been lowered by 0.46% to further attract the best borrowers.
Prosper.com has responded by further emphasizing its’ auction model, driving interest rates as low as its investors are willing to fund based on risk.
Jessica Ward is a freelance writer from Seattle. You can also read her work at www.debtkid.com and www.pennywisefamily.blogspot.com.