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LoanNow Launches Group-Signing to Significantly Reduce APR on High-Risk Loans

LOS ANGELES, CA--(Marketwired - May 13, 2015) - Responsible lender LoanNow today introduced a new group-signing feature as part of its repayment motivation algorithm. By gathering multiple loan co-signatures from friends and family called vouches, deep subprime borrowers can actively reduce their loan APR by as much as half during the term of their loan.

LoanNow first leverages non-traditional data to assess risk levels and offers affordable loans to deep subprime borrowers. Its proprietary system then uniquely monitors and incentivizes an individual's financial behavior in real-time to reduce default and drive down their overall cost of credit.

"We believe in people more than we do their credit scores," said LoanNow CEO Harry Langenberg. "While most lenders are only focused on analyzing historical data for a credit decision, we think there is a huge opportunity to apply predictive analytics within the loan lifecycle and align incentives around repayment so that good borrowers can save a lot of money."

The group-signing feature allows LoanNow borrowers to ask friends and family to vouch for them as micro-cosignatories in $25 to $500 increments. LoanNow rewards borrowers with this newly reduced risk profile by lowering the interest cost and remaining monthly payments over the rest of the loan term.

On average, a LoanNow borrower that secures $1,000 worth of vouches from 10 or more people can expect to cut their APR nearly in half. Both the amount of the vouch and the total number of vouches figure into the savings formula. Group-signing can continue throughout the duration of the loan, but the earlier it occurs in the loan lifecycle, the more impact it has on reducing the cost of credit.

"For many borrowers, LoanNow is their only alternative to extremely expensive loans, such as from payday lenders," continued Langenberg. "We are committed to providing an affordable, responsible loan option that people have more control over and that ultimately can improve their financial health."

Every LoanNow loan is underwritten to consider the financial needs and repayment capabilities of a borrower. Loan amounts of up to $2,500 and 24-month terms are available at transparent, much lower rates than payday loans. LoanNow reports all payment history to credit bureaus.

LoanNow will continue to expand its repayment motivation algorithm beyond group-signing to include additional positive financial behaviors such as making payments early, applying additional payments towards principal, and rendering consecutive on-time payments.

For more information on LoanNow or to apply, please visit http://www.loannow.com.

About LoanNow
LoanNow is a responsible online installment lender offering a more affordable and transparent alternative to payday loans. The Company's goal is to make better loans available to good borrowers by considering their real-time performance during the term of the loan, rather than only evaluating their historical track record. Its repayment motivation algorithm incentivizes good financial behavior, like timely payments, and awards loan credits to reduce the cost of credit during the loan lifecycle. LoanNow is a private company based in Orange County, California. Learn more at http://www.loannow.com or follow us @loannow.