Peer-to-Peer Lender Loanio Launches to Help Credit Challenged People Obtain Loans

NY-based Loanio, a new peer-to-peer (p2p) social finance lender, has launched today. Loanio says what differentiates them from the other p2p lenders is that they allow co-signers to help others get credit.

Loanio CEO and Founder Michael Solomon notes, "only around
10% of borrowers on p2p lending sites wind up getting a loan." Loanio is attempting to help people with no credit and poor credit by attached a co-borrower to the loan. Loanio charges an origination fee to borrowers and a service fee to lenders.

Loanio’s suggested interest rates range from a max of 7-14% for A credit through 22%+ for E credit.

Loanio also offers a service to borrowers named "Platinum Verification Service". By paying a fee to Loanio, they will verify self-reported data which can help with the a lender’s assessment. One interesting note from the Loanio Web site, "all loans are originated by Loanio and then sold to website lenders who are legally considered the loan purchasers."

Check out our 3-part social lending overview and our coverage of p2p social lenders Lending Club, Prosper and Zopa.