Lending club was introduced only a few years ago basically it is a peer to peer service; it helps its applicants by providing those loans without a high interest rate, and thus helping them avoid the typical bank loans. Initially in 2007 it was a facebook application. But later in 2008 they had to register with the SEC, because the loans provided were considered precarious. Lending Club is not that risky for the person who is getting the loan, as he needs to fill an application form submit it, if it gets approved the lending club investors will invest money that you require.