Lend Academy Network Forum

Lending Club Discussion => Investors - LC => Topic started by: viking on June 10, 2013, 02:51:10 PM

Title: How does LC set the base interest rate (currently 5.05%)?
Post by: viking on June 10, 2013, 02:51:10 PM
How does LC set the base interest rate (currently 5.05%: https://www.lendingclub.com/public/how-we-set-interest-rates.action)?
Wouldn't a lower base rate increase the number of borrowers vs lenders and potentially increase LC's profits (more origination fees - provided that all loans still get funded of course)?
Title: Re: How does LC set the base interest rate (currently 5.05%)?
Post by: AnilG on June 10, 2013, 04:36:28 PM
See my blog post from last year http://andirog.blogspot.com/2012/06/lending-club-base-interest-rate-excess.html. Also, you will find info in one of the older LC SEC filings.