Leading Marketplace Lender SoFi Extends Product Line with Personal Loans
Offers borrowers an alternative to high interest rate credit cards in 45 states and the District of Columbia
San Francisco, Calif. — February 17, 2015 — Marking a significant extension of its product line, Social Finance, Inc. (SoFi), a leader in marketplace lending, today announced it is now offering personal loans in 45 states and the District of Columbia[i]. As the only personal loan designed to meet the needs of early career professionals, SoFi offers borrowers an alternative to high interest rate credit cards to reduce existing credit card debt or make a major purchase.
More than half (52%) of millennials report that debt reduction is a key financial goal for 2015, and reducing credit card debt is the top priority[ii]. SoFi, the first to offer refinancing of both federal and private student loans, has since funded more than $1.75 billion in loans. With the introduction of personal loans it is expanding its product line to meet this important need. SoFi applied its nontraditional underwriting approach, which takes into account merit and employment history, to offer qualified borrowers personal loans with the following features:
- Borrow $10,000 – $100,000
- Fixed interest rates starting at 5.5% APR
- Simple online application
- A choice of available loan durations
In a further demonstration of its nontraditional approach, the company will extend its extensive member benefits, like job placement assistance and SoFi Unemployment Protection, to personal loan borrowers. To date, SoFi has helped more than 60 SoFi members secure new jobs through its career support program. As with its student loan refinancing products, SoFi Unemployment Protection will suspend monthly SoFi loan payments for borrowers who lose their jobs through no fault of their own.
“The introduction of personal loans is an important milestone for SoFi,” said Mike Cagney, CEO of SoFi. “First, it deepens our relationships with existing members – many of whom have refinanced their student loans with us – and helps us reach an even broader segment of early career professionals. Second, it shows that our underwriting model, which helped us become the largest refinancer of student loans, is a critical differentiator for SoFi. And just as importantly, it proves we’re making great strides toward solving borrowers’ biggest pain points with traditional lenders.”
The Millennial Disruption Index[iii] (MDI), a survey of more than 10,000 millennials, found that 53% of those aged 18-34 “don’t think their bank offers anything different than other banks,” and 71% “would rather go to the dentist than listen to what banks are saying.”
Aimee Young, Chief Marketing Officer at SoFi, said the MDI research supports SoFi’s mission and product expansion. “Our members tell us they are eager for solutions that remove barriers that prevent them from pursuing their ambitions and interests,” she said. “The SoFi personal loan was designed to help people free themselves from the cycle of high interest credit card debt and allows them to invest in what matters to them most — whether that’s relocation, a wedding, or home improvement.”
Unique in marketplace lending, SoFi was the first to offer refinancing of both federal and private student loans and has invested heavily in delivering a lending experience that meets the needs of ambitious millennials. Most recently, the company introduced low down payment mortgages and mortgage refinancing to qualified borrowers in twelve states plus Washington D.C., with plans to expand to additional states soon.
In addition, SoFi borrowers, called members, also enjoy benefits such as career coaching, unemployment protection, and entrepreneurship support.
For more information on SoFi personal loans, visit SoFi.com.
SoFi is a leader in marketplace lending and the largest provider of student loan refinancing, with over $1.75 billion in loans issued. SoFi helps ambitious early stage professionals accelerate their success with student loan refinancing, MBA loans, mortgages and personal loans. Its nontraditional underwriting approach takes into account merit and employment history among other factors to provide unique financial and investment products. For more information, visit SoFi.com.
For media inquiries:
Debra Jack, SoFi
415.423.1316 (o) 415.706.5012 (m)
2 Mintel 2014 Lifestage Marketing Report
3 For more information: http://www.millennialdisruptionindex.com