San Francisco-based student loan marketplace Credible announced today the launch of a new platform offering personal loans which involves the involvement of several of the most influential online lending companies, including the like of Prosper,Lending Club,Avant,Upstart and Pave.
Founded in 2012, Credible started out as a student loan marketplace - one that allows students to field competitive loan offers from a vetted range of traditional and non-traditional funding providers.
The new launch follows on from the recent closure of a $10m Series A fundraise that marked the next phase in Credible’s evolution. At the time of this successful investment round, company representatives admitted the possibility of expansion into new product fields to “further empower consumers to take control of their financial decisions”. Today, that possibility became reality.
“We’re listening to our community of borrowers and responding by extending our multi-lender marketplace to include personal loans. We’re proud to be partnered with a number of the leading online lending companies, and look forward to broadening the borrower-friendly experience that we’re known for in the student loan market.”
The new product appears to be fairly straightforward. After a soft credit inquiry, borrowers hopefully receive instant offers from multiples online lenders and they have the chance to compare them on a single dashboard, choosing the most advantageous.
The launch of the new marketplace will expand Credible’s customer base, but will also benefit Credible’s partners, who will have a new channel through which to sell their loans. Prosper - the US second largest marketplace lender – has been one of the first platforms to join Credible’s personal loans platforms.
Itzik Cohen, Chief Business Officer at Prosper, added:
“We’re excited to be among the first companies to join Credible’s personal loans marketplace. The Credible personal loans marketplace will help us educate more people how a loan through Prosper can help them take control of their finances and improve their lives.”
Broader seems to be better. Indeed, Credible isn’t the only platform embracing product diversification. Last October,Lending Club - the world’s foremost marketplace lending platform – also expanded its offering, releasing a new multi-draw line of credit product, alongside its existing term loans. Similarly, Patch of Land – a US peer-to-real-estate (“P2RE”) lending marketplace for residential properties – entered the commercial space last August.