For the borrowers, the following is the simple procedure that needs to be followed if they wish to get access to their loans:
- The potential borrower first needs to fill the online form that will ask for the borrower’s personal credentials:
– The Name of the Applicant
– The Residential Address of the Applicant
– Social Security number
– The Date of Birth of the Applicant
– The Monthly Earnings
- The applicant will then be asked to define an amount for the loan which must lie in the range of $1,000 to $40,000 and then select the purpose for the loan for example for home renovations or to pay medical bills or for any other major reason.
- The borrower will then be provided with rate offers and the Lending Club itself do a soft check on the applicant’s credit. The borrower will then be presented with the final offer which would include the principal loan amount, rate of interest, the exact repayment amount each month and all the terms and conditions of the loan.
- Lending Club also then assigns a grade for the risk for every borrower according to the rating on the credit, the exact amount of the loan to be assigned and other compulsions with it. The grades are already defined above.
- This specific “grade” that Lending Club assigns to every applicant will then gauge the offer which will be presented to the borrower by The Lending Club. The better this grade is the more weight-age will be given to the desired interest amount that the borrower will be given. Even the higher amounts of loans will be given to those who have a better grade.
- After the procedure above is done the borrower has the option to either accept or reject the presented offer of the bank. Then at this level, Lending Club will operate an in depth inquiry of the borrower’s credit score if the borrower accepts the given terms.
- The borrower should then link his respective bank account and other documents. The borrower will also be required to submit all the credentials that are asked for instance any governmental ID cards or taxation details. Lending Club will make use of these credentials to consider your application request.
- Then all there is left to do is get your required funds Get funds. Once your loan is approved and backed by investors, the money will be deposited into your bank account. The whole process usually takes 7 days (sometimes less and sometimes more)
What if the borrower wishes to cancel the loan?
What if you wish to reject your loan after it has been applied for and funds have been made available then the borrower will have 5 days for its cancellation.
The borrower needs to make a call to Lending Club as soon as possible and let the money stay in the registered and linked bank account and then the Lending Club will cash it back during 5 to 7 business days.
Important Cues that the borrower needs to remember
The borrower needs to make scheduled timely payments every month and the first payment would begin once a 30 day period has elapsed from when the loan is disbursed.
However, every borrower needs to know that Lending Club will be drawing payments every month on an automated basis from the bank account that the borrower has linked with Lending Club. Moreover, if the borrower wishes to pay any additional installments before time or pay off the entire loan once and for all then they can do so at any time.