What is LendPal?
LendPal is an online peer-to-peer lending marketplace that allows individual investors to invest directly in personal loans made to creditworthy borrowers. It operates similarly to lending platforms like LendingClub and Prosper, facilitating personal loan transactions between investors and qualified borrowers.
On the LendPal platform, investors can browse listings of borrowers' loan requests that have passed LendPal's credit assessment models and select loans to invest in based on details like the loan amount, length, APR, and borrower's credit info. Investors fund the loans partially or in full, with most loans getting investments from multiple investors to spread out risk.
In exchange for putting up capital to fund the loans, investors receive monthly principal and interest payments directly from the borrowers over the life of the loans. LendPal handles collecting payments and distributing them to the appropriate investors. It provides statistics and projections on potential returns to help investors evaluate loans.
For borrowers, LendPal provides access to personal loans that they may not be able to qualify for from traditional banks. If approved, borrowers can obtain lower interest rates than some other lending options like credit cards or payday loans.
LendPal uses technology like automation, algorithms, and data analytics across its processes like credit underwriting, fraud detection, and loan servicing to streamline operations, reduce costs, and enhance matching between investors and qualified borrowers.