LendingClub Corp (NYSE:LC) the renowned online marketplace connecting investors and borrowers reported the introduction of an auto refinance product that offers car owners an innovative solution to save capital on their auto loans. It is being introduced initially to California residents, and the firm plans to launch it nationally in 2017.

The new product leverages Lending company’s expertise and technology to help eligible clients save capital by refinancing into affordable loans with clear terms, no hidden fees and better rates.

The management speaks

Scott Sanborn, the CEO and President of Lending Club, said that tens of millions of U.S. residents borrow more than half a trillion dollars annually to purchase cars. The processes and practices of the auto lending industry provide consumers limited alternatives and a lack of transparency. It has resulted in a gap between the prices customers pay and the prices they might otherwise eligible for, unnecessarily leading to debt burdens. The company is thrilled to leverage core capabilities and technology to put funds back in customers’ pockets.

Lending Club has turned into the country’s largest source for personal loans, mainly by helping customers get lower interest rates compared to conventional alternatives including high interest credit cards. Presently there is over $1 trillion in outstanding auto debt, with only a fraction of that refinanced yearly. It presents huge potential for the millions of residents in the U.S. and for the company. Customers can save by refinancing into an affordable product.

The company predicts the average APR on new loans through it will be nearly 1-3% lower than existing loan, converting into a mean savings of up to $1,350. This is firm’s first access offering for a secured loan with a risk and return ratio that’s corresponding to the unsecured loans obtainable through same platform. It’s a remarkable step in the advancement of Lending Club’s platform, a win for clients, and will provide investors contact to another established asset.

The new offering is intended to educate and allow consumers to minimize the interest they pay and lower monthly payments, using an automated, fast and secure online system.