Quicken Loans, the 2nd largest retail mortgage lender in the country, is expanding into the world of personal loans.
On Feb. 2, the parent company of Quicken, Rock Holdings Inc., announced the launch of RocketLoans, an online service offering personal loans of up to $35,000.
That includes loans for things like home improvements, weddings, medical bills and debt consolidation.
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Immediate funding feature
RocketLoans will have its own shtick to set itself apart from other lenders. In March, it’s set to unveil its “immediate funding” feature, which will allow those applying for a loan to receive approval for loans that are under $10,000 in less than 10 minutes, according to a press release from Quicken.
The service will be able to evaluate and display loan options based on need and credit profile — all online.
Each customer will be evaluated based on income, credit score and debt-to-income ratio. Every personal loan is fully underwritten and presented without hidden fees or prepayment penalties, the company says.
“Today’s consumers have made it clear; they want simplicity and transparency from lenders. With RocketLoans, we have met that demand, while also streamlining the process and ensuring our clients have the cash they need quickly,” Todd Lunsford, RocketLoans CEO, said in a statement.
Interest rates from RocketLoans
Depending on the borrower’s history, personal loans from RocketLoans will have fixed terms of 3 to 5 years and carry interest rates from just over 5% to the mid-teens, according to the Detroit Free Press.
There’s also a loan origination fee of 1% to 5%.
Apply and receive approval online
The launch of RocketLoans comes soon after the inception of Quicken’s successful Rocket Mortgage in November 2015.
Rocket Mortgage was the 1st fully online mortgage process that allowed customers to apply, receive approval and lock in interest rates for home purchases and refinances.
RocketLoans aims to offer a similar service for personal loans.
“We have been able to leverage some of the best minds in both the mortgage and technology industries to create 2 distinct fintech breakthroughs that have, and will continue to, revolutionize how people think about the process of securing mortgages and personal loans right here in downtown Detroit,” Dan Gilbert, chairman and founder of Rock Holdings, Quicken’s parent company, said in a statement.
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