Karrot Personal Loans Got Chopped: Here’s Where to Borrow Instead

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Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.

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If you’ve never heard of Kabbage, just know that it has nothing to do with vegetables.

Rather, it provides loans for small businesses, as well as powers business and consumer lending for other organizations.

In 2014, Kabbage introduced Karrot, a program that provided unsecured personal loans up to $35,000.

But Kabbage recently stopped offering Karrot personal loans to grow its other offerings. Customers who already borrowed Karrot personal loans can continue making payments online. But those in need of a personal loan will have to look elsewhere.

Here are nine alternatives to Karrot personal loans that you can borrow instead.

9 alternatives to Karrot personal loans

Check out our top picks below for online lenders, banks, and credit unions with low-rate personal loans and a reputation for great service.

Online lenders with personal loans

If you’re interested in borrowing from an online lender, consider these three leading options.

1.SoFi

  • Offers personal loans between $5,000 – $100,000

  • Fixed APRs range from 5.99% to 20.01%

  • Offers repayment terms 24 to 84 months

  • No origination fee

  • Accepts joint applications from co-borrowers

  • Offers unemployment protection benefit if you lose your job

Visit SoFi

2. FreedomPlus

  • Offers personal loans between $7,500 and $40,000

  • APRs range from 5.99% to 29.99%

  • Offers repayment terms between 24 to 60 months

  • Charges origination fee between 0.00% - 5.00%

  • Provides same-day loan application approvals

  • Accepts applications from co-borrowers

Visit FreedomPlus

3. LendingClub

  • Offers personal loans between $1,000 and $40,000

  • APRs range from 6.95% to 35.89%

  • Offers repayment terms of 36 or 60 months

  • Charges origination fee between 1.00% - 6.00%

  • Provides peer-to-peer lending services

  • Accepts applications from co-borrowers

Visit LendingClub

Online lenders typically offer competitive rates, as well as easy and fast application processes. They tend to be best for computer-savvy individuals who are comfortable borrowing money without going into a physical location.

Traditional banks with personal loans

If you don’t want to complete the entire borrowing process online, you might prefer a traditional bank.

Some banks have moved their application processes online, but you’ll likely still be able to visit a brick-and-mortar location if you live nearby. Plus, you might get special rate discounts if you’re a banking customer.

1. Santander

  • Offers personal loans between $5,000 and $50,000

  • APRs range from 6.99% to 16.99%

  • Offers repayment terms between 24 to 60 months

  • Provides APR discount for banking customers who set up autopay

  • Available only to residents of Massachusetts, Maryland, Rhode Island, Connecticut, New Hampshire, New Jersey, Pennsylvania, New York, Delaware, Maine, Vermont, and Washington, D.C.

Visit Santander

2. Wells Fargo

  • Offers personal loans between $3,000 and $100,000

  • APRs range from 5.49% to 22.99%

  • Offers repayment terms up to 12 to 60 months

  • No origination fees

  • Provides APR discount for qualifying banking customers who set up autopay

  • Provides funds in as little as one business day once approved

Visit Wells Fargo

Credit unions with personal loans

Credit unions are another good option for borrowing a personal loan. As nonprofit, member-owned organizations, credit unions have a reputation for low interest rates and fees. Plus, they tend to offer personalized customer service.

Most have membership requirements to join, but some national credit unions are open to just about anyone. Here are a few personal loan-lending credit unions that almost anybody can join.

1. Alliant Credit Union

  • Offers personal loans up to $50,000

  • APRs range from 6.49%

  • Offers repayment terms up to 12 to 60 months

  • Typically provides same-day funding once your application is approved

  • Offers a debt protection benefit if you lose your job or experience a disability

  • Can join if you’re a member of a qualifying organization, work for an eligible company, are related to a current Alliant member, live or work in a qualifying community, or donate to Foster Care to Success

Visit Alliant Credit Union

2. First Tech Federal Credit Union

  • Offers personal loans between $500 and $50,000

  • APRs start at 10.00%

  • Offers secured personal loan options for borrowers with weak credit

  • Easiest to join if you live or work in Oregon, but nonresidents can join by first becoming a member of the Computer History Museum or the Financial Fitness Association

Visit First Tech Federal Credit Union

3. PenFed Credit Union

  • Offers personal loans between $500 and $25,000

  • APRs start at 6.49%

  • Offers repayment terms up to 36 to 60 months

  • No origination fee

  • Must live, work, or otherwise be affiliated with a qualifying organization, or donate to the National Military Family Association or Voices for America’s Troops

Visit PenFed Credit Union

Shop around for your lowest interest rates

Karrot personal loans are no longer available, but you have lots of other options when it comes to borrowing a personal loan. Most online lenders, as well as some banks, let you do an instant check to see if you pre-qualify.

This rate quote doesn’t affect your credit, and it lets you compare offers from multiple lenders before choosing one. Shopping around is a savvy move since it allows you to find an offer with your lowest rates.

If a lender you’re interested in doesn’t provide an online rate quote, you might speak with customer service to learn more about its personal loan product.

By doing your homework on personal loans, as well as estimating long-term costs with our personal loan calculator, you can find the best personal loan for your finances.

Note: Student Loan Hero independently collected the above information related to Santander, Wells Fargo, Alliant Credit Union, First Tech Federal Credit Union, and PenFed Credit Union. These institutions neither provided nor reviewed the information shared in this article. Since terms can change, check with the lenders for the most up-to-date information.

Interested in a personal loan?

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Student Loan Hero Advertiser Disclosure

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.

Advertiser Disclosure

Student Loan Hero Advertiser Disclosure

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.

RATES (APR)loan amount
5.99% – 20.01%1 $5,000 to $100,000
6.14% – 35.99% $1,000 to $50,000
6.98% – 35.89%* $1,000 to $50,000
99.00% – 199.00%2 $500 to $4,000
5.99% – 24.99%3 $5,000 to $35,000
5.99% – 29.99%4 $7,500 to $40,000
compare rates on Lendingtree now
NMLS #1136: Terms & Conditions Apply
1 Includes AutoPay discount. Important Disclosures for SoFi.

SoFi Disclosures

  1. Fixed rates from 5.99% APR to 20.01% APR (with AutoPay). Variable rates from 6.49% APR to 14.70% APR (with AutoPay). SoFi rate ranges are current as of November 15, 2019 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. See APR examples and terms. Interest rates on variable rate loans are capped at 14.95%. Lowest variable rate of 6.49% APR assumes current 1-month LIBOR rate of 1.81% plus 4.93% margin minus 0.25% AutoPay discount. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.
  2. To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull.
    See Consumer Licenses.
  3. Minimum Credit Score: Not all applicants who meet SoFi’s minimum credit score requirements are approved for a personal loan. In addition to meeting SoFi’s minimum eligibility criteria, applicants must also meet other credit and underwriting requirements to qualify.
  4. If you lose your job through no fault of your own, you may apply for Unemployment Protection. SoFi will suspend your monthly SoFi loan payments and provide job placement assistance during your forbearance period. Interest will continue to accrue and will be added to your principal balance at the end of each forbearance period, to the extent permitted by applicable law. Benefits are offered in three month increments, and capped at 12 months, in aggregate, over the life of the loan. To be eligible for this assistance you must provide proof that you have applied for and are eligible for unemployment compensation, and you must actively work with our Career Advisory Group to look for new employment. If the loan is co-signed the unemployment protection applies where both the borrower and cosigner lose their job and meet conditions.
  5. Terms and Conditions Apply: SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)
2 Includes AutoPay discount. Important Disclosures for Opploans.

Opploans Disclosures

Direct Deposit required for payroll.

Opploans currently operates in these states: . *Approval may take longer if additional verification documents are requested. Not all loan requests are approved. Approval and loan terms vary based on credit determination and state law. Applications processed and approved before 7:30 p.m. ET Monday-Friday are typically funded the next business day.

  1. To qualify, a borrower must (i) be a U.S. citizen or permanent resident; (ii) reside in a state where OppLoans operates; (iii) have direct deposit; (iv) meet income requirements; (v) be 18 years of age (19 in Alabama); and, (vi) meet verification standards.
  2. NV Residents: The use of high-interest loans services should be used for short-term financial needs only and not as a long-term financial solution. Customers with credit difficulties should seek credit counseling before entering into any loan transaction.

  3. OppLoans performs no credit checks through the three major credit bureaus Experian, Equifax, or TransUnion. Applicants’ credit scores are provided by Clarity Services, Inc., a credit reporting agency.

  4. Based on customer service ratings on Google and Facebook. Testimonials reflect the individual’s opinion and may not be illustrative of all individual experiences with OppLoans. Check loan reviews.

  5.  

    Rates and terms vary by state.

3 Includes AutoPay discount. Important Disclosures for Payoff.

Payoff Disclosures

  1. All loans are subject to credit review and approval. Your actual rate depends upon credit score, loan amount, loan term, credit usage and history. Currently loans are not offered in: MA, MS, NE, NV, OH, and WV.
4 Important Disclosures for FreedomPlus.

FreedomPlus Disclosures

  1. All loans available through FreedomPlus.com are made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. All loan and rate terms are subject to eligibility restrictions, application review, credit score, loan amount, loan term, lender approval, and credit usage and history. Eligibility for a loan is not guaranteed. Loans are not available to residents of all states – please call a FreedomPlus representative for further details. The following limitations, in addition to others, shall apply: FreedomPlus does not arrange loans in: (i) Arizona under $10,500; (ii) Massachusetts under $6,500, (iii) Ohio under $5,500, and (iv) Georgia under $3,500. Repayment periods range from 24 to 60 months. The range of APRs on loans made available through FreedomPlus is 5.99% to a maximum of 29.99%. APR. The APR calculation includes all applicable fees, including the loan origination fee. For Example, a four year $20,000 loan with an interest rate of 15.49% and corresponding APR of 18.34% would have an estimated monthly payment of $561.60 and a total cost payable of $7,948.13. To qualify for a 5.99% APR loan, a borrower will need excellent credit on a loan for an amount less than $12,000.00, and with a term equal to 24 months. Adding a co-borrower with sufficient income; using at least eighty-five percent (85%) of the loan proceeds to directly pay off qualifying existing debt; or showing proof of sufficient retirement savings, could help you also qualify for the lowest rate available.
* Important Disclosures for Upgrade Bank.

Upgrade Bank Disclosures

* Personal loans made through Upgrade feature APRs of 6.98%-35.89%. All personal loans have a 1.5% to 6% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. For example, if you receive a $10,000 loan with a 36-month term and a 17.98% APR (which includes a 14.32% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $343.33. Over the life of the loan, your payments would total $12,359.97. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by WebBank, Member FDIC.

** Accept your loan offer and your funds will be sent to your bank via ACH within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes this transaction. From the time of approval, funds should be available within four (4) business days.

Published in Loans, Personal Finance

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