Loans reportedly will range between $10,000 and $250,000 with up to five-year repayment terms, and are subject via Lendistry to an origination fee of up to 3 percent, with APR generally between 8 and 11.99 percent. Those rates aren’t exactly the best compared to industry averages, which range between 2.5 and 8 percent. The availability of “interest-only” loan options may raise financial red flags for some—as Investopedia explains, “these loans are best for sophisticated borrowers who fully understand how they work and what risks they’re taking.” The company joins rivals like Walmart, which offers similar services to its own employees as it gears up for a host of consumer-side financial expansions.
