FILE PHOTO: A LendingClub banner hangs on the facade of the the New York Stock Exchange in New York, New York, United States December 11, 2014. REUTERS/Brendan McDermid/File Photo
(Reuters) – LendingClub Corp on Monday cut loan approval rates for some high-risk borrowers and increased income and employment verification requirements, in a sign that alternative lenders could pull back from lending as the coronavirus crisis deepens.
The online lending pioneer also said it had increased interest rates from 2% to 4% for new borrowers, depending on the loan grade.
Jack Dorsey-led Square Inc said last week it had tightened eligibility for loans and expected slow origination growth in the second half of March.
The actions by lenders comes as Washington last week reached a deal for a $2.2 trillion stimulus package to help businesses and millions of Americans hit by the economic fallout of the coronavirus pandemic.
“Like other fintech and financial services companies, we are assessing…
