I thought I would update my progress with Lending Club. I originally lent $25 each to two individuals, each at an interest rate of 9.76%.
Thus far everything is going well. Both my loans are current and I’m having my money returned to me. It’s actually kind of cool when it works as planned.
I hand selected my loans. When you lend money you have the option of picking them yourself or letting Lending Club handle it for you. I wanted to know the story behind my two loans and decided to pick them by hand.
Thus far this is what my account summary looks like:
- Net Annualized Return: 9.64%
- Payments to Date: $23.44
- $19.06 in principle
- $4.38 in interest
My borrowers pay me back $1.60 every month. Obviously a very small amount of money, but hey, they’re paying me back. That’s better than some have experienced with social lending.
I funded the loans back in May of 2008, so we are a year into the payment plan. The expected final payments are in November and December of 2010. Quite a ways to go, but about halfway there nonetheless.
What’s Your Lending Experience?
Have any of you lent money through social lending sites like Lending Club and Prosper? What’s been your experience? Sitting on piles of money or did you get burned and walk away?
Interested in becoming a lender and earning great returns — all while helping someone lower their credit card interest from 25% down to something more reasonable like 9 or 13%? Apply to become a lender at Lending Club.