What fees does Lending Loop charge a lender?
There is no fee charged to sign up to the Lending Loop platform.
Lenders are charged a servicing fee and may be charged a collections fee in the event we must undertake collections efforts in respect to a Borrower loan. All fees are only taken from the funds that a lender receives on a repayment of funds and in no event will a fee be deducted from a Lender's account.
Lenders are charged a servicing fee amounting to an annualized rate of 1.5% of the outstanding principal amount owed under a note every time a monthly payment under the note is due. Lenders are only charged this servicing fee when they receive a repayment.
Lending Loop may deduct a collection fee if we undertake collection efforts in order to collect on a Borrower loan corresponding to a note that you hold. The collection fee may go up to 35% of the amount recovered if a collection action must be taken. Loop Funding Inc. does not charge a collection fee if payments are not collected, and no collection fee will be charged in excess of the amount recovered. We charge this fee to account for additional resources that we must deploy in order to undertake collection efforts.