Online Biz Lender Adds Consumer Loans
Kabbage, Inc., an online small business lender, announced Wednesday it will now also make consumer loans.
The Atlanta-based lender launched Karrot.com, a website that will enable consumers to apply for personal loans using a platform that is very similar to the streamlined approach Kabbage uses to fund small business loans and lines of credit.
“When we launched Kabbage, we created an entirely new way for small businesses to access capital and, in the process, make it simple and intuitive," Rob Frohwein, Kabbage co-founder and CEO said. “Today we have extended this elegant process to the personal loan category to provide low cost personal loans to consumers seeking access to less expensive credit. We will continue to innovate beyond today’s announcement, delivering real and robust technology solutions to the financial services industry.”
Karrot will provide loans of between $5,000 to $35,000 for reasons as diverse as vacation financing to debt consolidation and small businesses funding. The loans will carry a rate as low as 6.44% APR and could represent significant savings over rates offered by many credit card companies, the company said.
Karrot’s automated platform enables a customer to go from application to approval in minutes, with delivery of funds as soon as the next day, Kabbage added.