When looking for a source of passive income investing with LendingClub peer to peer loans network is one of great options. However, there are some requirements which one have to fulfill to become an eligible investor.
Building a LendingClub note portfolio the level of risk and return scenarios do not matter much enough. Moreover, there is no restriction on investment strategy. But whenever you deal with NOTES, investor has to meet some specific criteria. Investors residing in states other than California must have annual gross income of at least $70,000 and a net worth of at least $70,000 excluding home, furnishing & automobile.
While investors residing in California, should have annual gross income of at least $85,000 and a net worth of at least $85,000 excluding home, furnishing & automobile.
Area of Residence:
Currently, LendingClub investing platform is only available in United States. However, there are some restrictions to few states where the investor will only get a limited access to Notes.
- Residents of North Carolina, Alaska, Pennsylvania, and New Mexico can only purchase LendingClub Notes by using a secondary market.
- Residents of Ohio cannot invest in Notes up to now.
If any person changes his/her state then to get full access to features one can contact Investor Services to request an account update.
Verification & Identification:
One must be at least 18 years old, and must have a valid SSN to successfully verify your identity. If you are an entity, trust or a company then you can contact LendingClub at 1-888-596-3159 or email them to query about the process.
Minimum Investment, Account Types & Investment term
An initial deposit of $1,000 is required, after successful transfer you can then distribute your amount to a minimum investment of $25 per Note in different groups or applicants.
Multiple types of accounts are available to meet different needs of consumers. LendingClub offers joint account, individual account, corporate account, trust account, and minor account. You can open an account within 5 minutes by following some simple steps.
As you are investing in peer to peer lending network, you must make your mind to tie-up your money for a longer period of time. Currently, LendingClub offers 36 months and 60 months term to a loan applicant.