Borrowell Lowers Interest Rates as Canadians Show Promise Paying Down Debts

In response to reports that Canadians are increasingly making scheduled payments on their loans, Borrowell, a Canadian lending marketplace, is lowering interest rates.

The lower rates come just as the company hits $50 million in loan applications.

Borrowell’s lowest interest rate is being reduced to 5.6% APR from the previous low of 5.9% APR.

These adjustments come after Equifax released its National Consumer Credit Trends Report. While the report found consumer debt continues to climb, the national 90 day plus delinquency rate fell 3.7% compared to the same period last year, meaning Canadians are making regular payments to reduce their debt.

“We carefully monitor national debt trends and respond immediately,” Scott LaitinenChief Risk Officer at Borrowell says. “With Canadians repaying debt responsibly, delinquency rates in Canada have continued to decline allowing us to confidently lower our interest rates because we know Canadians repay their loans.”

“We think all lenders should be reducing their interest rates,” said Andrew Graham, CEO, Borrowell. “There is a real improvement in Canadians paying back their loans. We’re choosing to pass those savings onto the borrower, and we can still give the same rate of return to our investors.”

Taking a similar approach to Airbnb, Borrowell operates exclusively online, matching investors with borrowers. Goldman Sachs estimates online lending could grow to take over $1.7 trillion of an addressable $4 trillion of debt worldwide.

Last year Borrowell raised $5.4 million in seed funding.

Borrowell Launches Money-Lending Platform for Canadians

Borrowell, a marketplace lending platform, has launched in Canada.

The Toronto-born platform accepts applications from Canadians with good credit scores who want better alternatives to high interest rates on credit cards and avoid the inconvenience of bank loans.

According to Equifax, Canadians currently hold over $80 billion in credit card debt with a typical interest rate of 19.9 per cent or higher. Borrowell is designed to let responsible Canadians be smarter about their borrowing, and customizes interest rates based on the borrower’s credit profile. The marketplace lending platform offers loans up to $35,000 on three and five-year terms with rates starting from 5.9%.

“We believe Canadians deserve better borrowing options,” says Andrew Graham, CEO, Borrowell. “We reward responsible Canadians who have good credit by giving them an affordable alternative to the traditional, expensive and cumbersome options currently available. Our goal is to help Canadians conquer debt by giving them a smarter solution.”

“We’re seeing massive growth in marketplace lending around the world,” said John Bitove, Canadian businessman and Borrowell investor. “With Toronto-based Borrowell entering the market, Canadians now have an innovative and smarter way to borrow money, allowing them to get a better handle on their debt.”