An annual percentage rate (APR) shows you the true cost of borrowing money on a yearly basis. It’s the best way to quickly compare your loan options because it includes both the interest rate and any fees, including the origination fee.
Sections in this article cover:
- APRs for personal loans
- Origination fees for personal loans
- Your APR
- No prepayment fees
- No application or brokerage fees
- Other fees
- Can I get a better APR?
APRs for personal loans
APRs for loans through LendingClub* range from 6.16% to 35.89%. All personal loans through LendingClub have fixed rates and fixed monthly payments.
At LendingClub, the APR includes the following:
- Yearly interest rate
- Origination fee
If you choose to make your monthly payment by check, then any applicable check payment fee is also included in your APR. We don’t charge any payment fees when you make your monthly payments automatically from your bank account.
Origination fees for personal loans
Origination fees are one-time fees that range between 1.00% and 6.00% of the loan amount. The origination fee is included in your APR and it is only charged if you receive a loan.
- The amount of your one-time origination fee is based on your credit rating and the information in your application.
- The origination fee is subtracted from your loan, so the money you receive will be less than the fully approved amount.
For example, if you’re approved for a $6,000 36-month loan at an interest rate of 6.97% with a 3.5% origination fee of $210.00, you'll receive $5,790.00 in your bank account and will make 36 monthly payments of approximately $185.18 at a 9.39% APR.
Your APR
We look at a number of factors to determine your APR, including your application and credit history, and estimate the likelihood that you’ll be able to pay back your loan.
- If that information suggests that you’re a lower credit risk, then you’ll get an offer with a lower APR.
- If that information suggests that you’re a higher credit risk, then you’ll get an offer with a higher APR.
We know that you are so much more than just a number, but this method helps us deliver a fast, streamlined experience for borrowers and ensures that investors get a solid return.
No prepayment fees
You can make extra payments or pay off your loan in full at any time. We never charge any fees or penalties for making additional payments or paying your loan off early.
No application or brokerage fees
Applying for a loan is absolutely free, and no loan broker or other service is authorized to charge a fee on our behalf. We'll never ask you to pay any type of up-front application fee or other advance payment to obtain a loan.
If someone else asks you for a broker or application fee, please contact us at support@lendingclub.com so we can investigate.
Other fees
If your payment is more than 15 days late, we may charge late fees and other penalties to compensate the investors who've backed your loan. A late payment fee is 5.00% of your unpaid payment or $15, whichever is greater. You can find out more about late fees and penalties in your Loan Agreement.
Can I get a better APR?
Unfortunately, we can’t negotiate your APR. Borrowers reduce their rate by an average of 30%** with a loan through LendingClub, and most borrowers tell us that they get a lower rate through LendingClub compared to the alternatives they’ve looked into. We hope that’s the case for you.
When comparing your options, be sure that you're factoring in all costs, such as balance transfer fees, annual fees, and early payoff penalties. Comparing the APR is the best, most accurate way to figure out the true cost of borrowing money. Also, keep in mind that applying for a loan through LendingClub does NOT affect your credit score. This may not be the case with other loan options.
* All loans made by WebBank, Member FDIC.
** Based on responses from 6,279 borrowers in a survey of 95,998 randomly selected borrowers conducted from 1/1/16 - 12/31/16. Borrowers who received a loan to consolidate existing debt or pay off their credit card balance reported that the interest rate on outstanding debt or credit cards was 20% and average interest rate on loans via LendingClub is 15.1%.
Related articles