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LendingClub Personal Loans: 2023 Review

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Jennifer Calonia
Jennifer CaloniaUpdated January 22, 2023

Overview of LendingClub

LendingClub is a lending marketplace that offers fixed rate personal loans ranging from $1,000 to $40,000, with an APR of 9.57% to 36%. There are no application or prepayment penalty fees, however, borrowers will be charged an origination fee up to 6%.The Takeaway: LendingClub may be a good option for borrowers looking for a small personal loan. There is no prepayment penalty if you choose to pay off your loan early. But be aware that you will pay an origination fee.

Pros and Cons of LendingClub

• Direct creditor payoff available• No prepayment penalty• Permits co-borrowers• Allows multiple loans• Borrowing limit might be restrictive • Origination fees• No co-signers allowed• No auto-pay discounts

Pros of LendingClub

Pays your creditors directly

If you’re using a personal loan to consolidate your existing consumer debt, LendingClub makes the process easy. Approved loan applicants can add their creditors to their LendingClub account for direct payoff. However, creditors must be in LendingClub’s payment network for direct payoff. You may need to manually pay off any creditor that isn’t.

No penalty for paying off loans early

LendingClub doesn’t charge borrowers for paying off their personal loan before the repayment term ends. If you can pay off your loan early, you’ll save on interest.

Co-borrowers are allowed

You can apply for a joint personal loan through LendingClub. Eligibility criteria and information from both applicants will be evaluated. This option can be helpful in securing a higher loan amount or a lower interest rate compared to applying on your own.

Option to take out more than one loan

Certain borrowers might qualify for additional loans through LendingClub. The bank doesn’t limit the number of active loans you can have. However, it does cap your total borrowing amount across all loans at $50,000.

Cons of LendingClub

Low borrowing limit 

LendingClub’s maximum personal loan limit is $40,000. Some other lenders offer loans up to $100,000, which might be better for those with large expenses.

Charges origination fees

LendingClub charges 2% to 6% in origination fees, based on the borrower’s application and loan details.

Cosigners are not permitted

LendingClub does not allow cosigned personal loans. This can be problematic for borrowers who may have a difficult time qualifying for a LendingClub personal loan on their own. 

No discounts for automatic payments

Unlike other lenders that give interest rate discounts for enrolling in auto-pay, LendingClub does not offer this perk.

LendingClub Personal Loan Terms, Rates, and Fees

Loan amounts: $1,000 to $40,000APR range: 9.57% to 36%Loan terms: Up to 60 months (five years)Prepayment penalty: NoneApplication fee: None. However, there is an origination fee ranging from 2% to 6%Co-borrowers allowed: YesApproval speed: Within hours Information accurate as of Jan. 22, 2023.

Who May a LendingClub Personal Loan Be Right For?

  • Borrowers who are consolidating debt. The company makes debt consolidation easier by letting you choose to use loan funds to directly pay off your creditors.
  • Borrowers who need a small loan amount. You can get a personal loan for as little as $1,000 so you don’t have to borrow more than you need.
  • Borrowers who need a joint personal loan. If you can’t qualify for a loan on your own, or you want to apply for a joint personal loan, LendingClub allows co-borrowers.

Who LendingClub May Not Be Right For

  • Borrowers who need a high loan amount. Some expenses, like financing an addition to your home, for instance, might require more money than LendingClub’s maximum loan limit of $40,000.
  • Borrowers who want to avoid fees. The lender charges origination fees up to 6%.
  • Borrowers who need a co-signer to qualify. LendingClub does not allow co-signers on personal loans. 

What to Watch Out for With LendingClub Personal Loans

  • Late fees. The lender offers borrowers a 15-day grace period after their due date at no penalty. However, if no payment is received, you’ll be charged a 5% late fee (minimum $15).
  • Creditors must be in the payment network for direct payoff. If you're consolidating debt and you want LendingClub to directly pay off your creditors, the creditors must be in the lender’s payment network..
  • Funding timeline varies. Although LendingClub personal loans can be funded in just 24 hours after approval, that’s not necessarily the case if they need more information from you. You’ll need to upload any requested documents and complete any necessary paperwork in a timely manner to minimize delays.

LendingClub Personal Loan Eligibility Requirements

  • US status: Citizen, permanent resident, or a U.S. resident with a valid, long-term visa
  • Age: At least 18 years old
  • Financial account: Have a bank account that can be verified
  • Minimum credit score: 600
  • Income requirements: Not disclosed
  • Maximum debt-to-income ratio: Not disclosed
  • Cosigners allowed: No
  • Co-borrowers allowed: Yes

Repayment Options for LendingClub Personal Loans

Borrowers have two repayment term options to choose from. LendingClub offers a three- or five-year term to pay back your loan. In addition, you can pay off your loan early with no prepayment penalty. You can do so through your LendingClub Member Center account, with a check, or make early or extra payments by phone.If you’re struggling with your personal loan payment, contact LendingClub at [email protected] or call (844) 227-5011 to discuss your repayment options.

How to Apply for a LendingClub Personal Loan

  1. Check your rate. You can go online to see if you’re pre-qualified for a LendingClub personal loan. You’ll need to provide your personal information, annual income, the loan amount you need, and the reason for the loan. This step involves a soft credit inquiry that doesn’t affect your credit.
  2. Choose your preferred offer. LendingClub will provide the personal loan offers that you’re pre-qualified for, which details their rates, terms and repayment options. If you decide to proceed with the loan application, select the loan option you want.
  3. Complete the application. After making your selection, you’ll need to finish the online application, and verify your email address. You’ll receive updates about your personal loan status via email.
  4. Upload and/or complete documents. You may be asked to upload supporting documents for your loan application. This might include proof of income and a copy of a government-issued photo ID and proof of address. You’ll also need to complete a 4506-C form which gives LendingClub permission to request your latest tax return from the IRS.
  5. Link your bank account. To receive your personal loan funds, you’ll link a bank account to your LendingClub account. Borrowers who enroll in auto-pay will have their payments drawn from this account.
  6. Add creditors, if applicable. If you’d like to have loan funds sent directly to your creditors for debt payoff, you can add these credit accounts. You’ll need the creditor’s name, your account number with them, and the amount to be paid.

Alternatives to LendingClub Personal Loans to Consider

LendingClub is one of many personal loan options. It’s wise to shop around with other lenders to find the best offer for you.
  • Marcus by Goldman Sachs: This lender offers fixed-rate personal loans of $3,500 to $40,000 with an APR of 6.99% to 24.99%. Borrowers who enroll in auto-pay receive a rate discount. Marcus by Goldman Sachs has zero fees — no application fees, late fees, prepayment fees, or origination fees.
  • Prosper: Eligible borrowers can get personal loans ranging from $2,000 to $50,000 with an APR of 6.99% to 35.99% from Prosper. The lender charges origination fees of 1% to 5%.
  • Upgrade: Upgrade offers a fixed-rate on personal loans of $1,000 to $50,000, with an APR of 7.96% to 35.97%. There are no prepayment fees, but Upgrade’s origination fees are up to 8.99%.
  • Lantern: Looking at multiple personal loan offers by filling out a single form is a convenient approach to shopping for a loan, and Lantern by SoFi makes it easy. In our marketplace, you can see all of your loan options, including LendingClub, and compare personal loans interest rates, terms and repayment options in one sitting. Explore your financing options with Lantern, and apply for a personal loan that fits your needs.

Frequently Asked Questions

Is the LendingClub legit?
Does LendingClub hurt your credit?
Is it hard to get approved by LendingClub?
Does LendingClub contact your employer?

About the Author

Jennifer Calonia
Jennifer CaloniaJennifer Calonia is a Los Angeles-based finance writer who has covered the gamut, including student loans, credit card rewards, consumer loans, and debt. Her work has been featured in outlets like Bankrate, NerdWallet, Business Insider, Yahoo Finance, and U.S. News.
Brand namesNo brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third party trademarks referenced herein are property of their respective owners.