December 2, 2015
With powerful tools built to support personal expenses of any kind, lending is no more an issue. There is a great variety of ways one can get a personal loan at any condition, with almost any credit score and for any purpose. Personal loans may have been an issue before, but now there are at least 21 ways to fund your personal dream.
Affirm is a financial technology services company that offers installment loans to consumers at the point-of-sale with smaller monthly payments for 3, 6 or 12 months of payback and APR ranging from 10% to 30%. Affirm is one of several Web startups experimenting with flexible loans by calculating the risk of borrowers based on a variety of personal data points, including information gleaned from social media profiles as well as the cost being purchased, rather than relying on FICO credit scores. It then determines the rate and structured payment to be offer to the customer. Recently, the company raised $275 million in Series B led by Spark Capital Growth, Jefferies and Andreessen Horowitz, Khosla Ventures and Lightspeed Venture Partners. Affirm was featured on the LTP9 Leaderboard as one of the most promising companies in the technology-based personal lending space.
Avant is a fast-growing marketplace-lending platform that is lowering the costs and barriers of borrowing for consumers by leveraging big data and machine-learning algorithms to offer a customized approach to streamlined credit options. At its core, Avant is a tech company that is dedicated to creating innovative and practical financial products for all consumers. Avant has secured around $1.43 billion in funding and almost reached the unicorns club with a $915-million valuation. More than 310,000 loans have been issued worldwide through the Avant website. The company offers personal loans ranging from $1,000 to $35,000. In 2015, Avant was named one of Forbes’ America’s Most Promising Companies as well as Forbes’ Next Billion Dollar Startups.
Best Egg provides quick, simple, low-rate personal loans for debt reduction or major purchases or expenses. The company has issued over $1 billion in loans. Loans are offered across eight categories with a minimum of $2,000 and max of $35,000. APR varies from 5.99% to 29.99% with 1-5% of origination fee. Payback period is three to five years. The APR offered will depend on your credit score, application information, loan amount, loan term and credit usage history.
BorrowersFirst is a peer-to-peer lending company that serves new generations of connected consumers. It provides access to personal loans and financial advice wrapped in a compelling brand that matches borrowers with institutional lenders to promote connected credit. The company offers loans starting at $2,500 with a maximum of $35,000. Interest rate varies from 6% to 29%. Origination fee varies and late payments fees are $15. Loans are issued across eight categories with payback periods of 36 or 60 months. Loans can be approved in less than 24 hours.
CircleBack Lending is an Internet-based credit platform. It provides a secure, transparent and efficient marketplace for accredited institutional and individual investors to purchase fixed income assets backed by consumer credit products. The company offers loans from $3,001 to $25,000, with interest rates ranging from 5.96% to 35.07%. Origination and late fees are charged as well. CircleBack Lending offers 15 types of personal loans with flexible rates. To learn more, click here.
Earnest, an online lending service, targets millennial borrowers and offers customized interest rate. The company offers low-interest loans, typically between 4.25% and 5.25% for qualified customers. Average loan size is around $10,000 with a maximum limit of $30,000. By the beginning of 2015, Earnest had lent more than $3 million. Using data analytics, Earnest is able to offer loans (for a period of one to three years) to new borrowers who have short credit histories, large student loans, or are just entering the workforce. Earnest bases its interest rates on not just a credit score, but also on a person’s employment history and future earnings potential. Last year, the company raised $15 million in funding.
Float is an alternative to the traditional consumer loan system. An alternative lending solution leverages the power of consumer shopping loyalty to provide interest-free loans to its member base. The company reached $1 million in total funding. The revenue is generated from the marketing of participating stores. The more consumers buy from merchants who are part of Float's program, the more credit they build. Float lends money out of the commissions that merchants pay to be part of the program. It’s a great option for a particular purchase as there are no fees/interests to be paid by the customer.
Powered by Kabbage, Karrot focuses on consumer loans through its automated platform. The company offers unsecured personal loans up to $35,000 with 36 and 60-month payment terms and rates as low as 6.94%APR. Loans are deposited to the accounts as soon as the next day. Application is free and company does not obligate qualified borrowers to take funds. Karrot offers 12 types of personal loans depending on the goal. Loans range from $7,500 to $15,000 with non-refundable origination fee and APRs from 6.94% to 8.99%. The origination fees range from 1.05% to 4.75% depending on the loan grade assigned by the system.
Lending Club operates an online credit marketplace where investors provide loans to creditworthy borrowers in exchange for the interest income. The company recently announced that it had reached $11 billion in loans on its platform. Lending Club, which is America’s number one P2P credit marketplace, achieved this milestone over the past eight years since its inception in June 2007. Credits are offered from $15,000 to $300,000 with interest rate from 5.9% to 25.9%. In 2014, the company reached $3.5 billion in transactional value.
LendUp is a fair and transparent online lender for short-term loans for those who cannot use bank services. The company also wants to help the unbanked and underbanked from falling prey to nonbank sources, which generally charge outrageous fees and interest rates. LendUp uses analytics to evaluate creditworthiness and analyze risk. The company recently raised $50 million in credit debt facility from Victory Park Capital. With the recent funding, the company raised a total of $64 million in four rounds from 17 investors. Borrowers can achieve four levels in borrowing: silver, gold, platinum and prime. Starting with silver, borrowers can move up to prime which allows borrowing up to $1000 at 29% APR.
LightStream is an online consumer lending division of SunTrust Bank. The company is so assured that it can provide the best loan experience ever that it gives a $100 guarantee on that. Available across the US, LightStream offers loans from $5,000 to $100,000 with interest rates from 5.99% to 11.99% (as stated by the company, the rate can go lower if you are making home improvements or purchasing an automobile, for example). Payback period is two to seven years. LightStream will approve and deposit money fast, often the same day, and give extra consideration if you have money in your 401K or equity in your home.
OneMain Financial is affiliated with Springleaf Financial. The company offers personal loans to fit borrowers' needs with fixed rates and clear terms. Loans are risk-free with a 14-day guarantee. The company offers personal loans as small as $300 with a maximum limit of $15,000 (may vary depending on state) with annual interest rate ranging from 16% to 36.00% (varies by state). A late fee of 5% is charged as well. Penalty for returned checks is $20 (varies by state). Payback can be set for 12, 24 and 36 months.
Pave is a lending platform for millennials who want access to funding. Borrowers on Pave receive loans from $3,000 up to $25,000 with APR range from 6.73% to 35.36%, payable over two or three-year terms. Origination fee of 2% is charged along with late and unsuccessful payments fees up to 5% or $15 whichever is greater. Pave loans are intended for people early in their careers, those who exude potential and drive. While company uses consumer’s FICO score as a baseline, it also considers education, employment, work history and future earning potential. This underwriting process enables Pave to safely gauge how financially responsible a person can be, in turn allowing them to offer the lowest rate, without too much risk.
Payoff designs products that help people pay off their credit cards. The Payoff Loan was designed expressly for helping customers to pay off credit cards. The company reached $34.8 million in total funding and a valuation of $80 million in 2015. Payoff charges interest on credit card debt payoff loans, including charging a platform fee to cover loan origination and closing costs. Payoff's prospective clients fill out an online application form in order to learn their loan rate, which as of December 2014, ranged from 7.96% (11% APR) and 19.54% (22% APR).
Peerform is a peer-to-peer lending platform that connects lenders and borrowers for fixed-rate personal loans. It connects people who want to borrow money with investors. Peerform provides three-year term personal loans ranging from $1,000 to $25,000 with interest rate ranging from 6.4% to 25% depending on the grade of the borrower, which is granted by the platform. The company charges up to 5% of origination fees along with late payment fees. Peerform offers financing across 12+ categories. Late fees of 5% or $15 dollars are charged.
Promise Financial is a marketplace lending platform focused on the underserved market. They created an underwriting and technology platform to connect individuals with consumer-friendly financing from a range of investors, lowering the cost of borrowing and improving the way couples plan and pay for weddings. Loans are available starting at $3,000 and go up to $35,000 with rates starting at 5.89% APR and reaching 29.48% with fixed monthly repayment over three years. The funds are deposited directly to bank accounts in two to three business days.
Prosper is a P2P lending platform with more than 2 million members. The company has surpassed $5 billion in loans funded through its platform since its inception and a record $1.070 billion in loans in a quarter along with a record daily average. As reported by the company, debt consolidation continues to be the most frequent use case with approximately 288,000 loans taken for this purpose. Prosper Marketplace LLC recently acquired spending/credit tracking app BillGuard for $30 million and leading cloud-based patient financing platform American HealthCare Lending for $21 million in cash. In April 2015, the company was valued at $1.9 billion with total equity funding of $360 million. The company issues personal loans from $2,000 to $35,000 with interest rates from 6.05% to 31.90%.
SoFi is focusing on student loans (refinanced over $4 billion in loans issued), mortgages and personal loans. The company's proprietary approach takes merit and employment history into account to offer customized credit products. In 2014, SoFi became the first marketplace lender to secure investment grade ratings from S&P and Moody’s for senior notes in securitization. In October this year, the company raised $1 billion in its Series E funding round led by Japanese media giant SoftBank Group, marking the largest single financing round in the FinTech space to date. In June 2015, the company was valued at $4 billion with total equity funding of $1.4 billion. SoFi issues personal loans from $5,000 to $100,000 with APR ranging from 5.5% to 8.99%.
Springleaf Financial loans are aimed to help with bill consolidation, home improvements or unexpected expenses. The company has extended over $10 billion in personal loans to over 3.5 million customers. Personal loans range from $1,500 to $10,000 with interest rates starting at 16% and reaching 36%. To issue a loan, the company relies on the FICO credit score and requires a co-signer to back the loan. With 95 years in business, the company ensures a 93% customer satisfaction rate.
Upstart is an online lending platform that uses data to bring high potential borrowers and investors together. Upstart offers three-year fixed interest loans. Funds can be used for almost anything, including starting a business, paying for a coding boot camp, eliminating student debt or paying off credit cards. Their proprietary underwriting model identifies high-quality borrowers despite limited credit and employment experience. The company has raised $53.2 million in total funding and has reached $437.5 million in valuation. Upstart provides loans from $3,000 to $25,000 with interest rate from 7% to 28%.
Vouch promises to offer lower interest rates if you are able to get someone to vouch for a small portion of one’s loan. Vouch considers a borrower as a lower risk once someone is vouching for him. Loans start with amounts as low as $500 and extend up to $15,000 for borrowers with credit scores over 700. For borrowers with credit scores at 600, the cap is limited at $5,000 (600 is the lowest limit of the credit score allowed). APRs start at 7.35% for borrowers at a good standing and reach 29.99% for those with poor credit score. Qualified sponsors either increase the cap of the loan or decrease the APR percentage.