Online lender Prosper will be adding a new digital Home Equity Line of Credit (HELOC) product in 2019, according to a note from the company. The introduction of the HELOC is described as a new milestone for the marketplace lending platform.
Prosper is one of the largest marketplace lending platforms in the US. In the past, it has targeted the consumer lending sector with the majority of their borrowers looking to refinance expensive credit card debt.
Beginning in 2019, Prosper says it will be partnering with banks to improve the HELOC application process and reduce the time from application to closing. Prosper says this is an opportunity for traditional banks too as they will be able to better scale their HELCO footprint by leveraging Prosper’s tech.
Prosper says it will be able to provide a near instantaneous approval for applicants seeking a home equity loan. HELOCs originated through Prosper will have no origination fee and offer the same rates as banks.
It was not immediately clear if the HELOC products would be part of their peer to peer offerings.
David Kimball, CEO of Prosper, explains they are taking advantage of their expertise in consumer credit and personal loans to build a product that removes the complexity and time-consuming barriers in applying for a HELOC:
“For many of our customers, a HELOC could be a better choice for their financial needs and we’re thrilled to be working with our bank partners to render the traditional process obsolete with a new digital HELOC process that is simple, fast and painless.”
Launched in 2005, Prosper has originated more than $13 billion in personal loans through its platform to date.