Lending Club, the peer-to-peer lending service, just recently passed the quarter billion mark in loan originations (that’s like A-Rod contract money!). In April alone Lending Club originated $17.5 million in loans.
From Lending Club CEO Renaud Laplanche:
“The inefficiencies of the traditional lending market have driven more and more people to the Lending Club platform. Borrowers and investors alike find the transparency, ease-of-use, great rates and returns an attractive alternative.”
Makes sense. People are wary of the stock market and are looking for alternative ways to invest their money. On the flip side, getting a loan through a traditional bank can be an inefficient process that’s full of fees. And you still might not get the loan you need in this tight credit economy. P2P loans, like with Lending Club, are a great alternative for those who might otherwise turn to credit cards.
What is peer-to-peer lending? Basically it’s a way to connect investors with credit-worthy borrowers while cutting out the red tape you get with traditional bank loans. Investors get competitive returns and have the choice of picking their investments (you can start with as little as $25) while borrowers get to borrow at lower rates to help fund their goals and pay off debts.
See more about peer-to-peer lending in my Lending Club review.
Lending Club Wins a Webby and Offer up Cash Bonuses
Lending Club recently won a Webby at the 15th annual Webby Awards in the category Best Banking/Bill Paying site. Lending Club is celebrating their Webby and their loan origination milestone by offering up some cash bonuses for eligible investors.
Cash Bonus up to $1,500 to IRA Investors
IRA investors can earn a bonus in the following tiers:
- $1,500 cash bonus for a transfer, rollover or contribution of $100,000+
- $500 cash bonus for a transfer, rollover or contribution of $50,000-99,999
- $250 cash bonus for a transfer, rollover or contribution of $25,000-49,999
Here’s the fine print in the IRA bonus:
To receive your bonus, all funds must be: (1) newly transferred since the offer inception date of May 2, 2011; (2) continuously maintained in your Lending Club account; and (3) fully invested on the Lending Club primary platform market within 90 days of May 2, 2011 to receive your bonus. The funds that qualify you for this bonus will be locked for investment purposes only and unavailable for withdrawal. You acknowledge and agree that Lending Club reserves the right to withdraw the full original value of the bonus amount delivered to you upon violation of any of these terms. Failure to fully invest the new funds within the time period set forth above will result in your forfeiture of the bonus amount. Transactions in the secondary market (the trading platform operated by FolioFN) do not count as “investing funds” or towards unlocking the bonus. This bonus payment is taxable so please consult with your personal tax advisor. You are responsible for any taxes related to this offer. Void where otherwise prohibited. This offer may not be combined with any other offer. This offer may be discontinued at any time without notice. Limit: One bonus per tax ID with a maximum bonus of $1,500 per tax ID
New Investor Cash Bonus up to 2% of Investment
New investors have the opportunity to earn a 2% bonus, up to $7,500, for eligible investments.
Here’s the fine print for the new investor bonus:
To be eligible for the bonus, all funds must be transferred to your new account within 45 days of your registration date, continuously maintained in your Lending Club account and fully invested on the Lending Club platform within 45 days of your registration date. Your bonus, if any, will be placed in your Lending Club account within 15 business days following the determination of your eligibility. Transactions in the secondary market (the trading platform operated by FolioFN) do not count as “investing funds” or towards unlocking the bonus. This bonus payment is taxable so please consult with your personal tax advisor. You are responsible for any taxes related to this offer. Void where otherwise prohibited. This offer may not be combined with any other offer. Void where otherwise prohibited. By clicking Open an Account you agree to the terms and conditions of this offer. This offer may be discontinued at any time without notice. Limit: One bonus per tax ID and a maximum bonus of $7,500 per tax ID.
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