The group of loans is being bought by Tanager, which is an entity related to US private equity house Apollo Global Management.
The value of the assets in the deal was put at £610 million, with Apollo, which is listed on the New York Stock Exchange, paying a cash consideration of £257m.
Lloyds said the portfolio had generated losses of £33m in 2012.
It added: "The sale proceeds will be used for general corporate purposes and the transaction, although capital accretive, is not expected to have a material impact on the group, due to existing provisions taken against these assets."
The deal is expected to formally complete in the first half of next year.
Last week, Lloyds sold a book of eurozone commercial property loans to US hedge fund Cerberus.
The Bank of Scotland owner's turnaround has been gaining pace in recent months.
Earlier this month, it saw the biggest growth of any bank in its net lending through the Funding for Lending scheme.
Its share price also closed above 73.6p for more than 30 days in a row across October and November, earning the chief executive a long-term bonus of around £2.2m in shares, although he cannot cash it in until 2018. Shares closed up 1.05p, or 1.36%, at 78.24p.