Author Topic: How does LC set the base interest rate (currently 5.05%)?  (Read 1714 times)

viking

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How does LC set the base interest rate (currently 5.05%)?
« 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)?

AnilG

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Re: How does LC set the base interest rate (currently 5.05%)?
« Reply #1 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.
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