Interest Rate Change: +1% for Risky Grades

Today Lending Club disclosed an interest rate change. Compared to the previous rates, it’s a relatively large adjustment to the risky grades. This is to address the higher-than-average default rates we’ve seen in the D and E grade loans. It’s refreshing to see that Lending Club is adjusting the rates according to default rate changes so quickly to balance risks. Here’s how the new interest rates stack against the previous ones:

2016-01-28 IR Change