According to a recent press release, Lending Club has increased the upper limit on loan requests from $25, 000 to $35, 000. According to Lending Club CEO Renaud Laplanche, this change was “prompted by customer demand.”
This is the second major change in their lending policy over the past year or so. The first was when they introduced five year (60 month) loans to complement the original three year (36 month) term.
As for me, I have little interest in five year loans, and I’m also not interested in funding mega-loans. In fact, I don’t typically invest in loans over $20k – partly because they rarely meet my note selection criteria, and partly because it seems like fraudsters are more likely to go for the big score.
Despite my trepidation about larger loans, Lending Club claims that loans in excess of $20k actually perform better than smaller loans, returning 10.30% annualized vs. an overall average of 9.68%.