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Reuters takes a closer look at the LightStream loan
Unsecured loans provide consumers with an alternative to the traditional bank loan and its requirements for collateral or liens, according to this story from Reuters.
“Interest rates and terms should be more important to consumers than whether or not a loan is secured. But unsecured loans may pull in people who care more about convenience and paperwork avoidance.”
There are many reasons to like unsecured loans like those that LightStream originates, according to the Reuters story.
“Those who don’t have enough home equity to qualify for a second mortgage or home equity line of credit could get an unsecured loan based on their credit score and their assets. Financing could be available for 100 percent of a project rather than limiting the total loan amount to a percentage of the property’s value. Borrowers wouldn’t be risking their property if they failed to repay the loan.”
The story also takes a closer look at LightStream, an early pioneer of online lending and the unsecured loan:
“LightStream, the online lending division of SunTrust Banks Inc., is taking aim at a niche space: Low interest unsecured loans for highly qualified customers. It’s all part of a broader bank industry plan to woo and keep so-called mass affluent customers, and to avoid losing market share to new peer-to-peer lending sites that cut out banks altogether, says Greg McBride, senior financial analyst for Bankrate.com.”