Peer to peer lending firm, People Capital, has originated 100,000 in new loans to student borrowers during its first month of operations from five different lenders, with another 45 student borrowers waiting on funding, according to a report from the New York Times.
People Capital is a peer-to-peer lending company that allows college students to take out private student loans which are funded by individual investors or financial institutions through its peer-to-peer lending service.
People Capital differentiates itself from other student lending organizations based on the company’s use an expanded credit rating model which makes use of the student’s academic record, SAT scores and what school they attend, allowing borrowers to get student loans who may not qualify solely based on their credit score. People Capital refers to their expanded credit scoring model as “Human Capital.”
The lending process involves a reverse Dutch auction in which investors bid at what interest rate they are willing to fund loans at, similar to how Prosper Marketplace operates. The lender that offers to fund a loan at the lowest interest rate will win the right to originate the loan.
People Capital launched their service earlier this year, which currently in beta.
