LendingClub Drives Auto Refinance Across 40 States, Reaching 94% of US Population

Digital marketplace bank LendingClub now offers automobile refinance loans in 40 states, reaching 94% of the population nationwide and saving the average borrower about $4,000 over the course of the debt, the company announced on Tuesday (Nov. 30).

First introduced in California in 2016, LendingClub’s auto refinance product features an easy application process with loan completion in three days instead of the typical wait of several weeks, according to a press release emailed 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 mortgage loans, home equity credit lines, and student loans, per the announcement. Almost 66% of LendingClub’s members have a car loan, and it typically represents the second highest monthly expense after housing.

LendingBank said its average APR on auto refinance loans is almost 5% lower than members’ previous loans, so the average savings works out to over $4,000 across the life of the loan.

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“We see auto refinance loans as an enormous opportunity for our 3.8 million members and for LendingClub. Who would not want to save thousands for just a few minutes work?” Todd Denbo, SVP of Auto at LendingClub Bank, said in the announcement.

“Now that we’ve transformed the process for refinancing an auto loan and can sell loans through our marketplace as well as hold loans on our balance sheet, we’re scaling the product. Auto is a key step in our vision to create a holistic customer experience that seamlessly integrates saving opportunities for our members across our product offerings,” Denbo added.

Founded in 2007, LendingClub has more than 3.8 million members. As a digital marketplace bank, LendingClub holds loans on its balance sheet and also sell loans on the marketplace.