Lending Club announced yesterday that it will raise interest rates for new loans by an average of 0.25 % to match the mortgage Reserve 's move earlier in December . The Wall ##ding Journal suggests that the move “ may indicate a shifting dynamic for peer - to - peer investors , which have mostly been competing for new borrowers via direct lending and personal - finance websites , while enjoying a long queue of investors starved for yield by rock - bottom interest rates . Lending Club could have done nothing , essentially giving borrowers a free pass on the rising cost of credit , but Chief Executive Renaud Laplanche said that “ Club 's more effective marketing and targeting of borrowers mean that higher rates would n't slow down the platform 's growth .
Lending Club announced yesterday that it will raise interest rates for new loans by an average of 0.25% to match the Federal Reserve's move earlier in December. The Wall Street Journal suggests that the move “may indicate a shifting dynamic for peer-to-peer lenders, which have mostly been competing for new borrowers via direct mail and personal-finance websites, while enjoying a long queue of investors starved for yield by rock-bottom interest rates. Lending Club could have done nothing, essentially giving borrowers a free pass on the rising cost of credit, but Chief Executive Renaud Laplanche said that Lending Club's more effective marketing and targeting of borrowers mean that higher rates wouldn't slow down the platform's growth.