Marketplace lender lowers APR, surpasses $50M in loan applications
TORONTO, June 18, 2015 /CNW/ - In response to reports that Canadians are increasingly making scheduled payments on their loans, Borrowell, the Canadian lending marketplace, is lowering its interest rates. The lower rates come just as the company hits $50 million in loan applications, making it the fastest growing marketplace lender in Canada and proving that a customer-focused approach to borrowing is in high demand.
Borrowell's lowest interest rate is being reduced to 5.6% APR from the previous low of 5.9% APR. The interest rate changes will reduce the cost of borrowing for almost all new borrowers.
These adjustments come after Equifax released its National Consumer Credit Trends Report. While the report found consumer debt continues to climb, the national 90 day plus delinquency rate fell 3.7% compared to the same period last year, meaning Canadians are making regular payments to reduce their debt. Borrowell's proprietary technology allows the company to respond quickly to consumer credit trends and pass the savings on to Canadians so they can pay off their debt faster.
Scott Laitinen, Chief Risk Officer at Borrowell says: "We carefully monitor national debt trends and respond immediately. With Canadians repaying debt responsibly, delinquency rates in Canada have continued to decline allowing us to confidently lower our interest rates because we know Canadians repay their loans."
"We think all lenders should be reducing their interest rates," said Andrew Graham, CEO, Borrowell. "There is a real improvement in Canadians paying back their loans. We're choosing to pass those savings onto the borrower, and we can still give the same rate of return to our investors."
Taking a similar approach to Airbnb, Borrowell operates exclusively online, matching investors with borrowers. Goldman Sachs estimates online lending could grow to take over $1.7 trillion of an addressable $4 trillion of debt worldwide.
Marketplace lending is growing rapidly in popularity as legacy systems and bureaucratic processes can make traditional lending confusing, uncomfortable and inconvenient. With Borrowell, Canadians can complete an online application in one minute and find out instantly what their loan options are, all from the comfort of their home. Loans offer fixed interest rates, a monthly payment that will never go up, and the ability to repay at any time with no fees or penalties.
In April, JP Morgan warned that "Silicon Valley is coming" and taking away the pain points with traditional banking. The rapid uptick in loan applications since Borrowell's launch shows Canadians are ready for change and innovation.
Borrowell, Canada's fastest growing marketplace lender, is designed to let responsible Canadians be smarter about their borrowing, and personalizes interest rates based on the borrower's credit profile. Their lending marketplace offers loans up to $35,000 on three and five-year terms with rates starting from 5.6% APR. Interest rates are fixed, loans are fully paid off at the end of the term, and there are no early pre-payment fees. Borrowell's institutional partners include Equitable Bank and Oakwest Corporation. More information is available at: www.borrowell.com.
For further information: Linda North, 416-708-8012, [email protected]