Avant Will Refinance Auto Loans
Online lending platform Avant said it will refinance consumer auto loans.
The Chicago-based marketplace platform, Avant added auto-secured loans earlier. This refinancing option is available to borrowers in California with Illinois and Georgia to follow in the coming months.
According to the company website, Avant’s auto refinance loans range between $4,000 and $35,000 with APRs between 10.11 percent and 25 percent ranging over 2-5 years.
“Today’s middle-income consumers have to often settle for auto loans with high interest rates and poor lending experiences,” said Al Goldstein, CEO of Avant. “We want to be the one stop shop for the borrowing needs of consumers across the credit spectrum,” he said in a statement.
Earlier this month, the company crossed $3 billion in personal loans. Avant uses big data and machine learning to underwrite loans.
This move however comes at a time when subprime auto delinquencies are higher now than they were during the height of the most recent recession. The 60-day-plus delinquency rate of the subprime loan group reached 5.16% last month, compared to 5.09 percent in January, 2009. Credit ratings agency Fitch attributes this surge to increased competition among lenders resulting in weaker underwriting standards and more originations.Last modified: March 21, 2016