Interest rates that apply to each loan grade are fixed for the life of the loan. These rates are periodically updated and are applied only to new loans listed on the platform after the change. Updated interest rates do not impact outstanding loans. There are a variety of reasons interest rates are updated, including macroeconomic conditions, supply and demand on the LendingClub platform, and evolving default and charge off rates. Learn more about defaults, charge offs, and how we set interest rates.*
Expected charge off rates by loan grade are based on historical data, expected performance, market conditions, and other factors. In general, we update these rates quarterly based on the latest historical data on the LendingClub platform.*
Expected charge off rates are provided as an informational tool only, primarily to remind investors that it is inevitable that certain loans will charge off. Expected charge off rates are not intended to be a promise of future results and may not accurately reflect actual charge off rates. Actual charge off rates experienced by any individual portfolio may be impacted by, among other things, the size and diversity of the portfolio, its exposure to particular Notes or groups of Notes, as well as macroeconomic conditions.
*As an investor, you should expect interest rates, default rates, and/or expected charge off rates to change periodically. Such changes could impact your investing decisions and criteria. Information reported on the LendingClub website will always be current and accurate, and it will reflect any updates and changes to such rates. Investors should review the website and ensure that they are aware of current rates when making investment decisions.