Lending Club Returns at 16.02% in March 2012

My goal is to achieve a greater than 13% return using Lending Club, and my returns keep growing, even in the face of some setbacks.

Recent Performance

My goal is to reduce the number of loans that default by using smart criteria, and this month was an excellent one. I stayed steady at 5 loans that are late 31-120 days and no other loans are 15-30 days late, so there were no big setbacks. 3 more loans were paid off early, which affects my returns negatively, but as I say, better to pay early than not to pay at all. Plus, all of my late loans have combined payments of under $5, so it’s not exactly burning a hole in my pocket.

16.02% Interest Rate

A few of my loans were showing up as in the grace period, and in the past week, 3 payments have come through, which explains the slight bump over 16%.

Take a look at my account snapshot:

lending club

I didn’t deposit any more money, but with 3 loans being paid off in full and expected monthly payments of over $150, I still have plenty of available cash. Ideally I’d go through once a week, but really I should make sure to invest the idle funds twice a month so that it’s not just sitting there. The goal of the account is to make money and make money is what it shall do!

Future Lending Club Plans

I’ve got enough to make another $25 loan, so I’ll be doing that in the next few days. I also now have expected monthly payments of $152, so that means 6 new loans a month. That’s pretty cool, I sit back for a month and I get $150 I didn’t have before. No wonder this lending business is so popular!

Not too much to complain about here, let’s hope for everything to stay the same going forward!

7 Responses to Lending Club Returns at 16.02% in March 2012

  1. Wow those are some FANTASTIC returns. Do you have a cap amount you are thinking you want at risk in this account? or are you just going to keep rolling over gains/returned principal payments?

    • @Evan, Probably just keep rolling over gains. I may transfer more in from another Roth IRA, but that means I’d have to select a lot of new loans, which is time consuming, so for now, I’ll just keep rolling it over and getting more and more comfortable with the process.

  2. Those are great returns! I wish I lived in a state that allowed Lending Club.

  3. 16% is awesome! I just started investing with propser and lending club. I’m so new to them that I haven’t received a single payment yet. My first will be 4/2/2012. I am looking forward to it!

  4. Daniel,

    Glad to see you are doing so well in peer to peer lending.

    What might be of interest to your readers if you were to invest in both Prosper.com notes and Lending Club notes and compare and contrast your experiences.

    Let me know if we can supply you with any information on peer to peer lending or Prosper.com for future posts.

    Glenn G. Millar
    Prosper.com Employee
    Notes offered by prospectus http://www.prosper.com/prospectus