Lending Club reached an important milestone having reached $10,000,000 in loans originated. According to the stats, they have no loans defaulted (120 or more days late). That seems like an amazing statistic with 1214 loans out there. However, from this chart of originations by month, a large number of their loans are relatively new. Still Lending Club has a very good success rate with keeping loans current. There are very few loans that are 16-30 days late.
In looking at the data, I find it very interesting that one two loans with grades E or F are late. However, there are are 11 loans that are late with grades B, C, D. This makes me think twice about whether we truly have enough to go on. If you believe that the data is comprehensive, it would make sense to go for the bigger returns.
While on the topic of P2P Lending, Prosper and Lending Club have been making waves in the press recently. Late last week, Time Magazine wrote this article about P2P lending. And earlier this month Forbes wrote an article as well. CNBC even stepped in and did a segment on P2P Lending. It looks like we are approaching the years where P2P lending will come of age and become a household name.
If you are curious about lending money on Lending Club, Sign up through this link. Lending Club will give you $25 after your verify your account (I’ll receive $25 as well). Update: Offer may be expired now (12/9/2008).
Read Wiseclerk for more coverage on Lending Club reaching the 10M mark.