Jacaranda Finance launches 60 minute car loan product for the average Aussie borrower
Jacaranda Finance, the award-winning online lender, has officially launched a vehicle finance product for cash-rich but credit-poor Australians who either have a thin credit file or an average credit file they’re looking to improve.
Having traditionally offered secured and unsecured personal loans, the lender has expanded its product offering as of 1 August 2022, in order to meet the needs of its customer base who find themselves looking for a fast and convenient digital solution to finance their next vehicle.
It takes as little as five minutes to complete an application and customers are able to receive approval and settlement in as little as 60 minutes, 100% online.
According to Jacaranda Finance CEO Daniel Wessels, Jacaranda’s ultra-fast loan processing backed by the proprietary built MIMO lending platform means it’s possible for Australians to drive away with approved finance on the same day they find the car of their dreams.
“It’s been in the works for a while and it’s great to finally get this product into the real world,” Wessels said.
“There are some strong borrower segments that are negatively impacted by some pain points in the credit system and we’re looking forward to giving them a fair opportunity to purchase the vehicle they want while building or rebuilding their credit history in the process.”
The Jacaranda MIMO platform leverages multiple different data sources, particularly cash flow and spending data as opposed to solely relying on credit history.
“It’s 2022, and consumers are getting more and more comfortable with sharing sensitive data where they can receive real-time value,” Wessels added.
“We’re leveraging bank transactional data to underwrite consumers which is allowing us to manage risk while giving borrowers a fair product.”
With the lending environment changing rapidly, Wessels said the new generation of borrowers – particularly Genz and younger Millennials – often have a thin or limited credit file, which can make it hard to get a loan even if they’re responsible with money.
“For others, if you have a blip on your credit file, it can take years and years to get your credit history back to where it was,” he said.
“It doesn’t help that the vast majority of Comprehensive Credit reporting participants is limited to a handful of legacy lenders who only want to deal with excellent credit borrowers.”
The Jacaranda car loan product is currently a direct-to-consumer product, but the company has started onboarding select broker groups to pilot the broker channel with the ultimate intention to open up the product to the broker channel in 2023.
Details on Jacaranda Finance’s car loan, including interest rates, fees loan amounts and loan terms can be found here.
