Digital Market Bank Loan Club Now offers auto refinance loans in 40 states, reaching 94% of the population nationwide and saving the average borrower about $ 4,000 over the life of their debt, the company said Tuesday (November 30) .
First introduced in California in 2016, LendingClub’s automatic refinancing product offers a straightforward application process with loan completion in three days instead of the typical multi-week wait, according to a press release sent by e -mail to PYMNTS.
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Americans carry more than $ 1 trillion in auto loan debt, making it the fourth-largest share of household debt, after mortgages, home equity lines of credit and student loans, according to the announcement . Almost 66% of LendingClub members have a car loan, and it’s typically the second-highest monthly expense after housing.
LendingBank said its average APR on auto refinance loans is nearly 5% lower than previous member loans, so average savings are over $ 4,000 over the life of the loan.
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“We see auto refinance loans as a huge opportunity for our 3.8 million members and for LendingClub. Who wouldn’t want to save thousands for just a few minutes of work? ” Todd denbo, senior vice president of automotive at LendingClub Bank, said in the announcement.
“Now that we’ve transformed the auto loan refinancing process and can sell loans in our market as well as keep loans on our balance sheet, we’re adapting the product. Automotive is a key step in our vision to create a holistic customer experience that seamlessly integrates savings opportunities for our members through our product offerings, ”added Denbo.
Founded in 2007, LendingClub has over 3.8 million members. As a digital market bank, LendingClub holds loans on its balance sheet and also sells loans in the market.