Pave Personal Loans Review
- October 31, 2016
- Posted by: Jeff Gitlen
- Category: Personal Loans
Pave is a somewhat new peer-to-peer personal loan company that is based out of New York City.
Pave makes its statement as a company providing equal opportunity for funding to the public. On top of that, it is a personable company that puts a face to its staff in order to create a safe and trustworthy personal loan environment.
Pave's Personal Loan Offerings
5.17% - 15.96%
7.18% - 24.31%
2.29% - 36.00%
2 - 3 years
2 - 7 years
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There are plenty of borrowers with different objectives which leads to a diverse set of reasons for a personal loan. Pave covers a standard variety of reasons for taking out a personal loan in order to meet this diversity:
- Taking a Course or Class
- Paying Off a Credit Card
- Paying for Medical Expenses
- Making a Large Purchase
- Starting a Business
- Standard Living Expenses
- Loan Refinancing
- Moving Costs
- Auto Loans
- Wedding Expenses
- Debt Consolidation
- Home Improvement
- Buying a Home
Pave offers the kitchen sink when it comes to reasons for a personal loan, but this is pretty much the same deal with most peer-to peer personal lending companies.
Pave offers a much smaller range of personal loans to its customers since it only spans $3,000 to $25,000. This makes Pave one of the lowest offering peer-to-peer personal lending companies in the industry since most competitors cover at least a $30,000 range.
Despite having a low personal loan ceiling, there is something to be said about the annual percentage rates (APR) on a Pave personal loan. These personal loan rates have the lowest ceiling among its competitors despite have a slightly higher minimum APR. The lowest possible APR is 7.18% while the highest possible APR is 24.31%. All APR on a Pave personal loan are fixed.
Another unique aspect of a Pave personal loan is its possible repayment periods. Borrowers who intend to pay off his or her loan early or quickly would do well to consider borrowing from Pave. There are only two options for repayment terms: either 2 years or 3 years. This is different from most competitors, such as Karrot Personal Loans, who normally offer 3 year or 5 year repayment terms.
Pave adheres to the staple condition of most peer-to-peer personal loan companies when it comes to paying off a loan early. There is no prepayment penalty for paying off a personal loan before its payment term is over. This means borrowers can attack their loan as aggressively as he or she wants during repayment.
Origination fees range between 1% and 6% on personal loans. These fees are reflected in the annual percentage rates.
One of the best parts about getting a Pave personal loan is the chance of getting a low APR as a result of its underwriting process. The underwriting system incorporates both forward and backward looking methods to determine the rates on a personal loan. This criteria also serves as the basis for qualifying the desired loan amount. This is beneficial to plenty of people because it helps create a much more personalized and tailored loan based off of current earning potential, future earning potential, credit history, education, and loan performance history.
Adding to the chances of getting approved for a loan and low interest rate is the whole process of submitting an application. Since this company competes on the tech-oriented personal lending market, the application process is simple and easy to understand, and the website interface creates a clear direction towards making a submission. The entire application can be finished within a few steps and minutes. Afterwards, approval confirmation is delivered in nearly the same time frame. It makes for an effective process for borrowers to apply with.
Another extremely noteworthy benefit of borrowing through Pave is the turnaround. Successful applicants receive their funds as soon as one business day later. This is an impressive time frame that few companies can match.
There are no restrictions on how these funds are used which is a big help when considering potential issues with oversight. In other words, borrowers have complete discretion and freedom with his or her personal loan.
There are a couple of other features that are beneficial to the borrower. Those who take a personal loan out for a class or educational course can defer payments for up to three months. This makes it easy for borrowers who want to start making payments when the class begins.
While there are clear limitations with Pave personal loans, there are definitely some positives to borrowing from the tech-oriented personal lending company.
It is mentioned that Pave utilizes a forward and backward looking underwriting system when determining loan eligibility. This is one of the leading perks to borrowing from Pave. It allows individuals with a new or nonexistent credit history to secure a loan. This is a common problem for many young individuals who are looking to take out a loan, personal or not.
On the other hand, there are obvious shortcomings when comparing Pave to other personal lending competitors. The first and foremost being the personal loan cap. Since the loan limit maxes out at $25,000, many borrowers with tall orders need to look elsewhere. With that and the underwriting system in mind, borrowers with lesser credit who do not have a large financial need would do well to borrow from Pave.
All limitations aside, Pave has a quick application process that any user can appreciate. The customer service and entire company has a face to it which make Pave a bit more transparent and likeable.