In my opinion, contrary to the article posted by edward, above, interest rates on personal unsecured loans cannot decrease due to the high risk that accompanys them. Additionally,we are currently in a rising interest rate economy which will continue to put an upward pressure on the LC rates.
My personal LC account, started in April, 2013, now has 2000 notes, totalling $50,000. My NAR is 16.5% and my XIRR is 11.5%. I find these levels acceptable relative to the time required to tend to the account. If I manage to make every release ( which is not possible for me), LC requires about 2 hours ( not counting time spent on this Forum) each day, 7 days each week.
My biggest concern right now is will I be able to sustain account growth. If not, then I will have to turn my interest to other investment oportunities. It is becoming increasingly difficult to acquire C-G loans on the LC platform. I have recently increased my fractional purchase amount from $25. to $50. which should help in the short term. However, with the number of "Fully Paid" increasing, the notes that are not issued, and the interest accumulated, that becomes alot of money to reinvest without significantly increasing your account. For retail investors with $100,000+ accounts it must be a major problem. Until the retail investor is on a level playing field with the institutional investor, I don't see this changing.
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