LendingClub Corp (NYSE:LC) the largest online marketplace bringing borrowers and investors on one platform, reported the opening of its marketplace for investors in Indiana, Nebraska and Kansas, bringing the total count of investor states open to retail investors to 36.
The details
With uncertainty over future interest rates and in a period of market volatility, retail investors of Lending Club have continued to get returns averaging 5% to 8% yearly since its inception in 2007. The CEO Renaud Laplanche said that they are thrilled to provide this investment opportunity to investors in increased number of states.
Indiana, Nebraska and Kansas residents can now make an account at www.lendingclub.com, and select either a retirement account or traditional investment account. Investors get monthly payments of interest and principal as borrowers repay their loan amount, and can withdraw available funds at any time using a linked bank account.
The platform
Lending Club brings together investors seeking attractive returns and borrowers looking for lower rates on the same platform. Individual retail investors utilize the marketplace to get consumer credit under asset class not previously permitted to them. Investors have flexibility to invest in loans in increment diversifying across numerous borrowers, to easily and quickly design a portfolio that meets their investment goals. Each part of a loan is invested via Note, which have historical returns by Grade A to C of range between 5.19% and 8.88%.
However, it should be noted that Historical Returns do not promises future results. The notes offered by LendingClub Corp (NYSE:LC) are not guaranteed or insured and they can fetch negative returns. Also, the return on individual portfolio may be impacted by several other factors like the macroeconomic conditions, the diversity of the portfolio and exposure to a single type of note. Notes are sold by prospectus submitted with the SEC and investors should review the uncertainties and risks detailed in the prospectus before making any kind of investment in the Notes.
