Figure 1: LendingClub Loans by Grade

Average Interest Rate

Adjusted Net Annualized Return

3.1%

X

5.0%

10.0%

15.0%

20.0%

25.0%

7.1%

A

4.4%

10.6%

B

5.5%

14.1%

C

5.7%

17.9%

D

5.4%

21.4%

E

4.9%

25.9%

FG

3.1%

Note: Higher risk and interest rates mean lower returns.