LendingClub shares in the red after announcing tighter lending policies

While web-based lending marketplace LendingClub posted earnings in line with market expectations on Tuesday, an announcement that lending would be restricted to all borrowers except those with top-tier credit scores sent the group's stock spiralling lower.

"We estimate this cuts originations - and revenue - roughly 5%, and adjust our estimates accordingly," wrote an analyst from Susquehanna International Group.

LendingClub said its revenue for the 2017 financial year would be in the region of $576-581m, a drop on its earlier estimates of $585-600m, and highlighted that it's projected generally accepted accounting principles (GAAP) net loss would inevitably fall between $69-65m as opposed to the previously forecast figure of $69-61m.

However, LendingClub reported a strong third quarter as a whole with net revenue, although still just shy of the $157m consensus, hitting a record high of $154m.

FactSet forecast for the company's full-year revenue at $590m.

As of 1530 BST, shares were down 19.78% to $4.38 each.