Battle of the Brands - SoFi VS. Lending Club
SoFi VS. Lending Club
SoFi and Lending Club are two of the top peer lending platforms in the alternative lending industry, yet they are tremendously different. See how the two matchup against each other in a head to head comparison.
SoFi is unique in the industry in that It specializes in providing student debt and mortgage refinancing. The ability to refinance secured debt is truly unique. Additionally, SoFi offers personal loans for just like the rest of the alternative lending industry.
Lending Club on the other hand offers personal loans for all manner of reasons, which is a big plus for them. However, they do not specialize in any specific type of personal loan. Additionally, they offer green loans, also known as payday loans. Although helpful because they meet the needs of a range of borrowers, the lack of specialization can be a drawback when it comes to getting the best possible rates for more specific borrowing situations.
SoFi offers both fixed and variable rates to customers whereas Lending Club only offers fixed rates. SoFi offers the lowest fixed rate APR option at 5.95% versus 5.99% and the lowest maximum APR 12.99% compared with 35.96% for Lending Club. Additionally, SoFi provides more term repayment options for 3, 5, and 7 years and a higher maximum loan amount of $100,000 whereas Lending Club only delivers 3 and 5 years options and a maximum loan of $40,000.
Amenities and Support
Unlike Lending Club, SoFi provides its customers 24/7 support, which can be extremely helpful when catering to students who keep non-traditional hours. SoFi also gives a discounted interest rate for customers who enroll in their auto-pay program. Lastly SoFi has a career counseling and unemployment protection platform that is unmatched in the industry. Career counseling entails providing customers with resume review, interview coaching, and salary negotiating tactics. If a customer loses their job, unemployment protection will kick in, where SoFi will pause student debt payments and help customers with their career counseling program.
SoFi is the clear overall winner and managed to sweep all categories compared between the two brands, however Lending Club is still a great solution for borrowers with a wider range of needs. The narrow focus of SoFi means that its loan services are provided only in several niche areas whereas Lending Club can meet the personal loan needs for a variety of different scenarios.