LightStream has ceased accepting applications for new loans after Truist Financial Corporation announced the sale of its entire $7.7 billion portfolio of unsecured loans to Carlyle Group, a private equity firm, during its third-quarter earnings call on October 16. LightStream, launched in 2013 as Truist's online consumer lending division, primarily focused on fixed-rate unsecured personal loans for borrowers with good to excellent credit. The loans ranged from $5,000 to $100,000 and were aimed at various purposes, including vehicle financing, debt consolidation, and home improvement.
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Truist's CFO, Mike Maguire, stated that the sale represents an exit from a non-core business that was underperforming in terms of returns. He emphasized that this move would enhance the company's credit risk, liquidity, and funding profiles. Clients with existing LightStream loans can still manage their accounts online, but the LightStream origination platform will be retired.
Truist will continue to offer unsecured personal loans and debt consolidation services through its branches and direct channels. Truist spokesperson Catherine S. Matawaran confirmed that future plans would be directed to Carlyle for further information.
In light of LightStream's closure, borrowers seeking personal loans can consider several alternatives:
1. **SoFi** - Provides personal loans up to $100,000 with competitive rates and quick funding.
2. **Citibank** - Offers personal loans with a maximum APR of 17.49%, and up to $50,000 for eligible existing customers.
3. **Rocket Loans** - Features a rapid online application process with possible same-day funding.
4. **Upstart** - Accepts lower credit scores and evaluates additional factors like education and income.
5. **U.S. Bank** - Provides personal loans with starting APRs at 9.24% and no fees for late payments or prepayment.
6. **PenFed Credit Union** - Caps its APR for personal loans at 18%, requiring only a $5 deposit for membership while offering loans from $600 to $50,000.