Lending Club Review

An alternative investment vehicle I use is P2P lending (peer to peer). I use the platform lending club and a full review is to follow.

 

*I began using this platform in April of 2017 so I am still relatively knew to it and have not explored all aspects of it.*

 

“For those of you that are unfamiliar with P2P lending it has been around for a little bit now. On the lending club platform individual investors purchase portions ($25 increments) of loans.

Lending Club operates an online lending platform that enables borrowers to obtain a loan, and investors to purchase notes backed by payments made on loans. Lending Club is the world’s largest peer-to-peer lending platform.[4] The company claims that $15.98 billion in loans had been originated through its platform up to December 31, 2015.[5] “

lending clubb summary.JPG

Above is the summary page. In the upper left you can see the note status menu showing where your notes all stand. If you take a look at the note composition you can see I have a very aggressive note portfolio, the notes are graded on an A-E scale with A being the safer lower interest loans and E having the highest risk highest interest loans. A couple months ago lending club eliminated the F and G category of loans, you can no longer purchase these loans but I was grandfathered in with the F and G loans I already own.

percentage

Above is the notes detailed page. You can see my adjusted net annualized return of 11.84%, this accounts for the late and defaulted notes within the portfolio.

Lending Club info deposited account value NAR % return date immediate return monthly payments
active notes $1,500.00 16.50% 6/5/17
70 $1,700.00 $1,720.00 16.74% 6/19/17 1.176%
103 $2,500.00 $2,534.00 14.70% 7/7/17 1.360% ?
107 $2,500.00 $2,546.72 17.58% 7/21/17 1.869% $91.48
128 $3,000.00 $3,063.65 15.72% 8/4/17 2.122% $92.13
129 $3,000.00 $3,066.90 13.95% 8/29/17 2.230% $111.66
128 $2,900.00 $2,963.39 11.41% 9/15/17 2.186% $111.74
127 $2,850.00 $2,931.35 10.05% 10/3 2.854% $110.83
127 $2,800.00 $2,905.65 11.78% 10/17/17 3.773% $110.83
125 $2,650.00 $2,765.00 12.28% 11/1/17 4.340% $109.00
123 $2,600.00 $2,729.38 11.79% 11/15/17 4.976% $107.18
121 $2,500.00 $2,628.97 11.32% 12/1/17 5.159% $105.49
12/15/17

 

Lending club interest collected
month amount
April 2017 $0.00
May 2017 $11.04
June 2017 $29.03
July 2017 $21.33
August 2017 $37.25
September 2017 $38.81
October 2017 $40.66
November 2017 $41.20
December 2017
January 2018
February 2018
March 2018
April 2018
1 year gain $219.32

 

The tables above are my own personal information pertaining to Lending Club and how I track my notes. I try to update my running total every 2 weeks approximately and I track my total interest for the month via the monthly statements I receive. As you can see my I make around $40 a month in interest now that my notes are all matured and in place ( I was still buying notes up till mid August). My favorite thing about this platform is how easy it is to compound your returns assuming you do not withdraw your interest and principal which is what I’m doing, (Refer to my stretch investing post). I originally started with a very aggressive portfolio and when I was compounding my returns I was purchasing safer lower interest loans to help balance the portfolio. I am looking forward to investing more into P2P lending and to compounding my returns this spring when I get a little more money, as I pursue my goal to have multiple passive income streams bring in $500 a year and then $1000 a year by the  end of 2018.

Tell me what you think!