Features

Karrot is the personal loans arm of Kabbage, an online lender based in Atlanta that focuses on small businesses. Karrot provides fast personal loans at competitive rates to borrowers with good to excellent credit who haven't got time to wait for a traditional loan or credit card application but still require competitive rates.

How Does Karrot Work?

While most lenders take days to approve or deny a loan application, Karrot takes only minutes. Yet it still manages to keep interest rates low. This is because Karrot is built on the same underwriting analysis platform as Kabbage, which allows Karrot to confirm whether the income and cash flow reported are accurate.

Karrot's platform assigns applicants a grade based on their credit and income. Each grade comes with a specific interest rate. Although they do have to give Karrot access to their bank accounts and link their social networks to be considered, the trade-off is applicants know their interest rate and how much cash they are eligible to borrow within a few minutes.

What Are Karrot's Interest Rates?

Interest rates range from 6.44% to 27.22% APR depending on credit and income. The actual interest rates are as low as 5.73% APR. This includes a one-time, non-refundable origination fee that ranges from 1.05% to 4.75% depending on creditworthiness and whether it is a 36 or 60-month loan. The 60-month loans have a larger origination fee. Originations fees are deducted from the loan amount. For instance, if you are approved for a $10,000 loan amount and charged a 2% origination fee, you will receive $9,800.

How Much Money Can I Borrow from Karrot?

Loan amounts range from $5,000 to $35,000. A $10,000 with a 6.44% APR will cost you $306.22 a month: a total of $1,023.92 in interest. The same loan with a 27.22% APR will cost you $409.43: a total of 4,739.48 in interest.

Which States Does Karrot Operate In?

Karrot operates in all 50 states.

What Is Karrot's Application Process Like?

The application is short, requires little to no documentation and is performed entirely online. The application just asks how much the borrower wants to borrow, name, address, date of birth, annual income and email address. Identity, income and cash flow is confirmed by linking to applicants' social network and bank accounts.

In order to give a firm interest rate offer, Karrot only takes a soft pull of your credit history, which won't hurt your credit score. A hard pull, which could ding your credit score a little, is only performed if you agree to take the loan offer.

How Is Karrot Better Than Other Lenders?

Karrot provides loans of up to $35,000 with terms of up to 60 months at low interest rates and is able to give a decision within a few minutes. There are no prepayment penalties or other hidden fees to worry about. The application form is short and the entire process, from applying to receiving the cash can take as little as 24 hours.

  • Credit bureau reporting
  • Interest APR
    6% - 27%
  • Joint loans available
  • Loan Amount
    $5000 - $35000
  • No late fees
  • Max Loan Term (Months)
    60
  • Lend to military?
  • Origination Fee
    1.05% - %
  • Institution Type
    Direct Lender
  • Approval Speed (Hours)
    1
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0 votes

Other lenders that I tried to apply at couldn't offer the same dollar amount that Karrot could. I needed more money to actually make a dent in my debt and have a chance at getting out of it. Karrot helped me make that difference.


0 votes

My taxes are coming due next month, and I have to pay a lot. I had no idea that I would have to pay this much, so I didn't save any extra. Anyway, I found out that owing the government is not a good thing and that I would be better off borrowing and using the funds to pay them off. That's what I'm doing with Karrot and it's working out well.


0 votes

I read that this company can give you a loan in as little as 7 minutes once approved and I thought, no way! I did need a loan but I also wanted to test it out. Well, it worked! I actually got a loan in 7 minutes 10 seconds! I am also happy with the interest rate and the fact that I have a decent amount of time to pay them off.


0 votes

Tell me how you dont consider a Credit Union a bank?????? They are safer than most banks and owned by the customer. I cant believe you would turn someone down for this.


0 votes

Getting a loan has never been easier. Within minutes i got my decision and within 2 days money in my bank. And all taken care of online. No phone calls nothing. Thanks Karrot. Its been a great help. Only downfal is the amount to be paid back short terms. Be prepared to pay close to $300 monthly for 36 months on a $8000 loan.


0 votes

Nice company to get a loan from. They have polite customer service people and the loan process is very easy. You will be shocked at how easy it is to apply and then you don't have to wait long at all for the answer. I was able to deal with my whole loan issue in the morning and be off to enjoy my day.


0 votes

Karrot is affiliated with Kabbage, which makes business loans. Karrot is different from a bank in that they consider more than your FICO score, plus you receive a decision within minutes or hours, not days. interest rates can be as low as 6.44 percent but may run higher depending on your credit profile. Karrot is best suited for people with OK to decent credit. If your credit is great you can probably do better with a bank; if your credit is terrible, youll probably be turned down.


0 votes

I could have waited another week to get my money, but the fact that Karrot got me my money much more quickly than I expected saved me a lot in interest in the loan I was paying off. Even though I didn't get the lowest interest rate that Karrot gives, by paying off that other loan I was able to save a ton in interest, so I am definitely coming out ahead.


0 votes

Love, love, love that this company doesn't hit you with hidden fees at the last minute or when it's too late. You get what they say you are going to get with Karrot. And what you get is a good interest rate, providing that you have pretty good credit, which I thankfully do. My only regret is that I didn't get out more money. I would have if I'd known it was going to be such a smooth process.


0 votes

Getting out a loan is never fun, but I have to say that this process was almost pleasant. The customer service was really helpful and the website is well designed and easy to navigate. I was a little surprised at the fact that my credit score was almost too low to qualify, though. They kind of make it sound like anyone could get a loan with them, but I don't think that is true. Fortunately, I squeaked by and got a good loan with a good interest rate. I wouldn't ... be so happy, though, if I didn't get one, as my need for money was pretty immediate. More Less


0 votes

The cap on the amount of money this company could give me seemed a bit low, but I took it anyway, as I was in great need. I did get a good interest rate, so that helped. Unfortunately, I had to go out and get a loan with another company in order to fill in the shortfall. The interest rate and service and everything couldn't compete with Karrot. You are awesome Karrot!


0 votes

I've used their affiliate Kabbage before when I worked at as CFO at the small business that I ironically left prior to needing the loan that I recently applied for with Karrot. I got approval quickly from Karrot, as I suspected I would, and I got a tidy little sum that will tide me over until I find another job.


0 votes

I told myself I wouldn't do this, but I had another bad holiday season spending like the world was about to end!! I was so mad at myself when I realized that I had a bunch of credit cards to pay off or suffer horrible interest rates. I went to Karrot for a loan that would allow me to pay off the credit cards and not suffer too much. They gave it to me!


0 votes

For the amount of money I was loaned, I am a little worried about getting it paid off in 36 months. It's a large loan. I am going to do my best, though, and hope I don't need to get out another loan to pay it off. The interest rate really helps, as it is pretty low compared to other loans I've gotten out.


0 votes

Not able to help me out. Disappointed because I have had auto deposit from same income source for 6 years into my 30 year old checking acct. My income to debt ratio is wonderful and I have paid all credit cards off. I owe no credit cards or loans. They could have made money on interest on me. I always pay my bills on time.


0 votes

Not having a prepayment penalty was important to me. I usually get loans when I really need the money and then manage to pay them off before the loan is due. This company has that benefit and a lot more. I really like the website, which is super easy to navigate and understand.


1 votes

Compared to some personal loan rates, Karrots maximum interest rate is lower than some credit cards, so I decided to give it a try. Customer service was good and the application process went smoothly. I was pleasantly surprised to get okayed for a loan at less than the maximum interest rate and lower than my credit card. So it looks like I made the right choice. The repayment terms were really generous, too. There are loan fees, however, so be aware of that when you apply and make sure to ... ask about them. More Less


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