Lending Club has removed the service fees on loans over 20K for a limited time.
Larger loans need to attract investments more quickly than small loans in order to fund in the time available. So for a limited time, Lending Club is waiving the 1% service fee2 on all new investments made in loans of $20,000 or more – for the entire lifetime of that loan. Terms and conditions apply.
I believe there are some psychological barriers to funding higher loan amount for lenders which may contribute to the trouble of funding larger loans as well.
Borrowers of larger amounts of money generally carry higher interest and $35K loans are still new. However, as of today, returns are particularly high on loans north of $30K you must also remember loans over $25K are only about one year old, so you can reasonably expect this high return on larger loans to come down over the next 4 years.
I’ll dig into relating monthly payment to default rates/returns and follow up with a blog post. I believe that would be an interesting subject to explore.