In 2019, the average personal loan annual percentage rate (APR) at Lending Club ($LC) increased by 0.8% based on monthly averages. This most recent upswing in APR signals the largest year-over-year interest-rate rise since 2016.
In early 2019, average interest rates at Lending Club were 12.684%. As of December 2019, average rates (calculated monthly) have swollen to 13.48%.
Meanwhile, as interest rates moved up in 2019, the average principal lendees were granted decreased.
In January 2019, the average principal on loans was $16,500. As of this month, that has shrunk to a monthly average of $16,000.
This isn't the highest average APRs we've seen at Lending Club, however. In May 2013, average interest rates peaked at 15.2%.
Meanwhile, interest rates hit their lowest in November 2010 in the shadows of the 2008 financial crisis, before making a run to their aforementioned peak in 2013.
The good news for Lending Club borrowers is that the personal loan organization only issues fixed-rate loans. If the trend we're seeing here holds, though, borrowers will likely want to secure loans before what appears to be a bit of an APR run.
There is some good news for borrowers in 2019, though: the average monthly income for those who took out personal loans increased from $7,000 to $7,150, the highest it's been since 2016.
About the Data:
Thinknum tracks companies using the information they post online - jobs, social and web traffic, product sales and app ratings - and creates data sets that measure factors like hiring, revenue and foot traffic. Data sets may not be fully comprehensive (they only account for what is available on the web), but they can be used to gauge performance factors like staffing and sales.
- America's personal loans visualized: income, principal, and credit scores
- Personal loan interest rates are on the rise again, at least at Lending Club
- Lending Club personal loan principals are at their highest average of the past decade