Goldman Sachs (GS) is offering personal, unsecured loans of up to $30,000 through its new online platform, touting it as an alternative to high-interest credit cards.
The Marcus by Goldman Sachs platform was launched on Thursday, named after one of the founders of the finance giant, Marcus Goldman, the company said in a statement.
“For many who manage debt payments on high-interest rate credit cards, a straight-forward personal loan is a better solution,” Harit Talwar, head of Marcus, said in the release. Borrowers deemed credit worthy can apply at Marcus.com for a no-fee, fixed-rate personal loan of two to six years, the company said.
Goldman Sachs, with a $71.2 billion market capitalization, is making its way into an online lending marketplace which already has players like LendingClub (LC), offering consumer and small business loans, with an average interest rate of 13.8%, according to its website.
Goldman Sachs is initially accepting applications for loans from “millions of prospective customers” who receive a special code in the mail. The program will be rolled out to a broader audience in the coming months, the bank said.