Getting a personal loan from a bank can be a lengthy and frustrating process. Online lending marketplaces like Lendah promise a faster and easier way to get funding by matching you with multiple potential lenders. But is using a lending marketplace like Lendah the right choice for your borrowing needs?
Here is an unbiased Lendah review examining how it works, loan details, rates, risks, and more.
What is Lendah
Lendah is a website that connects people who need loans with lenders who offer them. It’s not a bank itself. Lendah just matches borrowers and lenders.
Again, Lendah is an online lending marketplace, not a direct lender. It works by connecting borrowers to potential lenders offering personal loans. Here’s an overview of how Lendah operates:
How Lendah Works
- You apply for a loan on Lendah’s website by giving personal details like income, job, and credit history.
- Lendah uses technology and people to match your application to lenders who may want to give you a loan. This happens fast, usually within a day.
- You’ll get loan offers from matched lenders. The offers have info on interest rates, length of loan, fees to borrow, etc. Offers come by email and on your Lendah account.
- If you like an offer, you work with that lender directly to get the loan. The lender gives you the money, not Lendah.
- Lendah gets paid by lenders when borrowers accept an offer. So they want to match you well.
Loan Info from Lendah
- Loan amounts from $1,000 to $40,000 based on income, credit, and debts.
- Loan length can be 2 to 5 years. Longer time = lower monthly payment but more interest paid overall.
- Loans are for personal use like debt, home improvement, and medical bills. No business or mortgage loans.
- Loans have fixed monthly payments. Payments are automatically taken from your bank account.
Requirements to Apply
You’ll need:
- Minimum credit score around 640. Lower scores may also work.
- Proof of regular income like pay stubs. Tax returns if self-employed.
- Valid ID like a driver’s license or passport. Social Security number too.
- Active checking account for money transfers.
If you meet the requirements, Lendah’s application takes only a few minutes to complete online.
Interest Rates and Fees
Rates and fees depend on which lender you choose:
- Interest rates are typically 5% to over 30%. Better rates for good credit scores.
- Origination fees of 1% to 5% of the loan amount. Deducted from the loan money.
- Late payment fees are around $15 to $30. Charged if over 15 days late.
- $20 for bounced electronic payments that don’t go through.
Compare all offers to find the best rates and lowest fees for your situation.
Lendah’s Lender Network
- Lendah matches you to state-licensed lenders and lenders affiliated with Native American tribes.
- The lenders available vary by state lending laws. Check eligibility before applying.
- Not guaranteed to match with all lenders. But a wide network provides options.
Funding Process and Timing
- Very fast in some cases. But usually takes at least 1 day for review.
- After approval, funding typically takes 1 to 7 days if you provide documents quickly and accept loan terms fast.
- Speed varies by lender requirements.
- Can take 10+ days in some cases depending on the lender’s verification process and timelines. Ask lenders for an estimate.
- The approved loan amount is deposited directly into your connected bank account via ACH transfer.
Paying Back Loans Through Lendah
You will make fixed monthly payments over the loan term directly to the lender. Typical repayment terms:
- Equal payment amount each month covering interest and principal.
- Payments are automatically withdrawn monthly on the due date via ACH transfers.
- Most lenders allow prepaying the loan early with no prepayment penalty. But there is also no interest discount for faster repayment.
- Expect late fees from the lender if monthly payments are not received on time as scheduled. This can also damage credit.
Security of Lendah’s Platform
Lendah uses advanced encryption and security measures to protect data, including:
- Data sent between your browser and Lendah’s servers is encrypted using SSL protocols. This includes your application info.
- Servers are hosted in state-of-the-art monitored and access-controlled facilities. This protects against physical breaches.
- Only employees who require access to user data to do their jobs can view it.
- Lendah pledges to never sell or rent your personal information without your consent.
You can feel confident providing your information through Lendah’s secure platform.
Is Lendah a Good Choice?
Whether or not Lendah is a good option for you when looking to get a personal loan depends on your specific situation and needs. Here are some key points to help you decide if Lendah is a good choice:
For borrowers with good credit scores above 640, Lendah can provide access to better interest rates than traditional banks. The ability to compare multiple lenders at once and potentially get funded within days also makes it attractive for those seeking a quick loan process. If you need funds faster than a bank would provide, Lendah is a viable option.
However, approval is not guaranteed since Lendah is just a marketplace. Those with poor credit face higher rates and more rejections through Lendah lenders. Delays are also possible depending on the lender’s verification process. And origination fees and other costs can accumulate.
Before applying, be sure to check Lendah lender eligibility for your state. And carefully compare all loan offers – don’t just accept the first option. Read the fine print so you know the true costs.
For those in urgent need of funds and who meet minimum requirements, Lendah can provide a quicker way to access personal loans. But be an informed borrower and only accept a loan you know you can repay comfortably. Consider both the pros and cons of marketplace lending before applying.
Pros of Using Lendah
Some of the key advantages of using Lendah include:
- Fast and simple loan process compared to traditional lenders
- Access to multiple lenders increases the chances of approval
- Loan decision in minutes or hours after completing the application
- Funding often within 1 week if matched and approved quickly
- Fixed monthly payments easily set up from a bank account
- Responsive customer service is available by phone and online
Cons to Know
There are also some downsides to think about:
- Not a direct lender, so no guarantee of loan approval
- Interest rates and terms dependent on the lenders you match with
- Possible delays if lenders require extra verification
- A hard credit check will temporarily lower your credit score
- Origination and late payment fees can add costs.
Conclusion
Lendah gives faster access to personal loans by matching borrowers with many lenders quickly. Could be a good option for those who don’t want to wait on banks. But compare interest rates and fees carefully. Make sure the loan works for your budget before accepting.
