Tech corporations perks are finally growing up. AllThingsD's Jason Del Rey reports that Google has spoken with Lending Club about the possibility of using its cash holdings to offer low-interest loans to Google employees.
Lending Club, which bypasses banks and credit unions by bringing together lenders and "credit-worthy borrowers" raised $125 million from Google Capital, it's late stage investment fund, and others in May. Opening its platform to corporations is part of Lending Club's growth strategy pre-IPO.
"The program we're putting in place gives the ability for large companies with lots of employees to make loans to their employees and use their treasury reserves, on which they are earning like one or two percent, and put them to work," he said in a recent interview. "At the same time, they would be offering a lower interest rate to their employees than what they're paying on their credit cards or other loans they have. It's really an HR benefit and recruiting tool."
Laplanche imagines employees using these loans to pay off high-interest credit card debt, large student loans or simply to consolidate debt into one loan, with payments being automatically deducted from paychecks. Lending Club charges an origination fee, typically of about four percent, to borrowers, but some companies may choose to pay that for their employees, Laplanche said. He said it was likely that Lending Club would ink deals with some large corporations in 2014.
Really living up to the "club" part of its name, huh. If it keeps going at this rate, it sounds less like a tech campus and more like your entire (cloistered) universe.
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