P2P lender LendingClub today announced in a press release that “$400 million in total loan originations have been issued through the platform since inception.”
The pace appears to be accelerating, according to the company: “The milestone comes less than four months after Lending Club reached $300 million in total loan originations in July. A record $27.5 million in personal loan originations in October contributed to the milestone. Lending Club loan originations are growing by more than 150 per cent year-over-year, and the platform has now paid investors more than $33 million in interest.”
“Lending Club has had a monumental year, with growth averaging 10 per cent month-over-month and continuing to accelerate,” according to Lending Club chief exec Renaud Laplanche.
I’ve always liked the idea behind P2P lending web sites quite a bit. Give the traditional banks a run for their money and crowdsource credit decisions. Very cool.
It also seems to be a promising way for consumers to consolidate their debts.
One issue I have with such sites, however, is that they tend to go for prime borrowers — I’d like to see a service that extended credit to those with less-than-perfect credit history. Those are often the folks who would benefit the most from debt consolidation.
In any case, congrats LendingClub. You all have earned it.