Online Personal Loans launched for Entrepreneurs

Kabbage Inc recently announced that it has launched an online personal loan service called Karrot Personal Loans.

About Kabbage

Kabbage which was launched in late 2011 has so far extended US$ 400 million in loans to small businesses for their working capital and expansion needs. Businesses can avail credit lines from Kabbage for amounts ranging from US$ 500 to US$ 100,000 through a simple online application.

The New Lenders

Unlike traditional lenders who approve loans based on credit scores given by credit rating agencies, Kabbage adopts a unique methodology and analyzes a businesses credit worthiness by looking at the financial data it generates.

This data could come from an online payment gateway the company uses or an online marketplace where it is listed. For instance, did you know that every time an individual or a business transacts on ebay, more 300 Data points are generated which can be evaluated to assess a prospective client ?

It is this data, that Kabbage evaluates from more than a dozen services given below before it extends a credit line.

online loans


Online Consumer Loans

Karrot is the latest offering of Kabbage Inc. The personal loan portal approves loans within a few minutes and assures online transfer of the loan amount to the clients bank account within 24 hours. The entire loan approval process is automated with no human intervention and the credit worthiness of the individual is assessed based on the credit history of the individuals Savings Bank Account.

Karrot offers more than a dozen different types of loan products, some of these are :-

  • Loan for Debt Consolidation – To reduce high cost debt.
  • Loan for Home Improvement – To renovate your home.
  • Short-Term Loans – Personal loans with repayment duration of 3-5 years.
  • Wedding Loans – For the dream wedding.
  • Start-Up Funding – Loan For Entrepreneurs.

The online Peer to Peer Lending market has seen more than US$ 6 billion in personal loans till date. With the launch of Karrot Personal Loans, existing p2p lending websites like Prosper and Lending Club are bound to face the heat in the coming days.

Abhay N

Author : 

Abhay is the founder and managing editor of India Microfinance. He is passionate about microfinance, financial inclusion and social entrepreneurship in India.

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  1. Balamurugan

    November 19, 2014 at 11:53 am

    Dear sir how are you ? I need personal loan pls send me advise or contact detiyales

  2. nagaraj

    January 11, 2015 at 6:17 pm

    Dear Sir

    Namasthe, i need to start small dairy farm with 5 to 7 cows. Shall i know monetary assistance from your end. I will invest around 1.5 lac


    January 17, 2015 at 11:06 pm

    Dear sir
    Namasthe , i need personal lonn pls send me advise or contact

  4. Asha Bansal

    November 2, 2016 at 5:21 pm

    Hi, great article.
    Unfortunately I am a victim of low cibil score and was looking measures to improve it as I also wanted to avail a personal loan to renovate my house. Please suggest me as the banks keep cibil score as the fundamental factor in giving loans.

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