As an alternative to traditional financial institutions, LendingClub.com, an online social lending network where people can borrow money at attractive interest rates, announced that it has facilitated the origination of more than $20 million in loans to borrowers since launching in May 2007.

“The current financial climate is creating mounting consumer distrust of large financial institutions and causing people to demand an alternative that gives them more control over their personal finances,” said Lending Club CEO and founder Renaud Laplanche. “Lending Club is leading the charge to deliver that alternative by providing a market where people can receive loans funded by other members—giving them a new option to finance their lives when they need it the most.”

Borrowers listing loans on the Lending Club platform have an average FICO score of 704 and state their intended use of loan proceeds for purposes such as debt consolidation, home improvement, launching a new business venture, returning to school or for assistance with hundreds of other life events.

While each borrower experience with Lending Club is unique, the following examples illustrate some of the most common reasons for requesting loans:

Getting Financial Houses in Order: To date, approximately 50 percent of the loans facilitated through Lending Club have been requested for the purpose of consolidating outstanding debt or paying off high-interest credit cards. Jada Brazil from Los Angeles, CA was tired of paying high interest rates on her credit card debt despite her solid credit history and turned to Lending Club to lower her interest rate by more than 35 percent. “Choosing Lending Club for my loan not only gave me a better interest rate—saving me money—but it also makes me feel good to know that the interest I pay goes to other people like me and not to some faceless bank.”

Investments Give Flight to Big Ideas: More than 600 people have requested and received loans in order to finance their small or home-based business. From launching new ideas to initiating more aggressive marketing programs, small-business owners have received financial assistance from their peers, giving flight to many businesses, including a new Turkish grocery store in California; an indoor baseball/softball training academy in Massachusetts; and a number of eBay-based businesses online.

Students Getting Started or Going Back to School: From the parents of new freshmen looking for tuition assistance and graduate students pursuing higher education to people looking to pay off medical and law school loans, about five percent of Lending Club loan listings request funding for the educational endeavors of borrowers and their families.

Financial Assistance for Life Events: To date, borrowers have requested loans for a variety of significant life events including engagements, weddings, home improvements, childbirth, unexpected medical bills and new starts on life. In preparation for a cold winter and high energy bills, a borrower from Ohio recently received a loan to install a wood-burning stove so that his family could better manage its heating costs this winter and reduce its carbon footprint.

Getting a Loan on LendingClub.com

LendingClub.com is open to individual borrowers with credit scores at or above 640 and a debt-to-income ratio of 25 percent or less. Using LendingClub.com, borrowers can apply for personal loans that are funded by other members. Loans are funded in the amounts of $1,000 to $25,000 with interest rates ranging from 7.37 percent to 19.36 percent, which typically are more attractive than those offered by banks and credit card companies. Lending Club handles user authentication, bank account verification, credit checking, credit reporting, funds transfers and collections.

About Lending Club

LendingClub.com is an online social lending network where people can borrow and invest money at attractive interest rates. Lending Club won the Webby Award 2008 for the “Best Banking Website” and has been nominated for “Top 100 Innovators” by The Industry Standard. Lending Club is headquartered in Sunnyvale, CA. More information is available at: http://www.lendingclub.com.