I have been interested in Lending Club since 2010. I heard about it and at first dismissed it as just a blimp because the banks will come back and start lending again. It has stayed and has grown more than 100% in outstanding loans in the past year. That is huge for any lender to double the amount of loans on the books. It has done this with the appeal to investors looking for healthy returns and a good supply of worthy debtors. It requires both to succeed and it has them in droves. It makes it easy to get a loan and pay a reasonable rate. They will change the way people look to take out loans. I also see this as a way for millennial to invest more and expect healthier returns. Younger investors are hesitant to invest in the stock market but helping out a neighbor while earning a good return appeals immensely to my generation.
This is why I am going to say that The Lending Club is something that is worthy of investment. It has lots of room to grow and it will change the market for loans. As more hear about it more people will want to take advantage of these loans and the terms. They can feel better about the loans because most of the interest paid goes to an individual investor instead of a bank. People will be less likely to default knowing the disappointment that will come from default. There will always be defaulters but I think fewer will default using this model and others might start using it too.
I am going to invest in Lending Club too. If the price is good tomorrow I will be there.
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