Amazing Insights on Loan Applications from Lending Club Loan Data


In this exclusive in-depth analysis, a loan expert sat down with our analytics team and analyzed loan data of Lending Club to gain insights on the company's lending services. In this article, we are covering various aspects specific to loan applications as observed for Lending Club.

How the length of employment of a banker can affect loan application of the customer?

A majority of loan applications are rejected by employees who have been in the firm for less than a year. 84% of loan rejections were made by such employees. The probability changes if the employee has been in the bank for more than 10 years. There is a high probability that the employee of a seniority level will grant the loan. Around 34% of accepted loan applications can be attributed to employees who have been in the firm for more than 10 years. The following illustration depicts the same:

Employees who have been in the bank for 6 years and above are likely to accept more than 50% of the loan applications allotted to them This acceptance rate is least in case the employee has been in the firm for less than a year. The following illustration depicts the same:

How is the acceptance/rejection rate affected depending on the kind of loan

Out of all the different kinds of loan application, those related to debt consolidation have acceptance as well as high rejection rates. As compared to other loan types, debt consolidation loans have acceptance rate of 58% while the rejection rate is 40%. The following illustration depicts the same:

Out of 1.4 million rejected loan application in 2014, 616169 were debt consolidation loans

Note: This is an interactive chart

Scenario of existence of Derogatory Public Records for accepted loan applications

Out of 390,000 acceptance loan applications, around 47000 applications had at least one derogatory public record in existence. Derogatory public records have a negative impact on the credit worthiness of the loan applicants.

Note: This is an interactive chart

Variation of interest rates as per the loan applications

Out of the total loan applications, majority of the loan applications had an interest rate of 14%. This was the case for 37000+ loan applications. The maximum interest rate witnessed was 25% which was the case for around 2400 applications.

Note: This is an interactive chart.

Note: The above charts in this article have been taken from a series of content prepared by our Analytics team. In this particular case, the analytics team worked on datasets of Lending Club's loan data to come up with the insights and charts. If you have a customized requirement to understand insights in Lending Club's lending services, please use this form. You can also reach out to us for any custom analytics requirement.



MEDICI Team is a group of content writers, bloggers, journalists, researchers, and editors from the MEDICI who collaborate to create FinTech insights.

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