Loanio (Nanuet, NY) operates an auction-based peer-to-peer lending platform. Prospective borrowers post requests for loans, which include credit score and debt-to-income information in addition to the amount requested, a description, state of residence, employment status or school status and occupation category. Loan amounts are up to $25,000, depending on the state. Lenders can bid to fund all or part of the loan at particular interest rates, with a $50 minimum.

Borrower credit scores are based on the VantageScore through Experian, which has a range of 501 to 990. Loanio converts the VantageScore to letter grades of F through A+, and requires borrowers to have a grade of E or better (569 minimum). A letter grade of E corresponds to roughly a 1 in 9 chance of default.

Borrowers are charged origination fees of 2% to 3%, depending on credit score, with a $95 minimum. An additional 1% origination fee is charged for a co-borrower. Lenders are charged an annual servicing fee of 1% of the outstanding loan principal balance.

Interest rates are set through a bidding process. Suggested rates vary from 7%-14% for the most creditworthy borrowers to more than 22% for the least creditworthy borrowers.

The Loanio web site does not specify loan terms, but a review of loan requests posted on the site indicates a maximum loan term of 60 months.

All states but Pennsylvania and South Dakota are open to Loanio lenders. About half the states are open to Loanio borrowers, including Alabama, Alaska, Arkansas, Connecticut, Delaware, Georgia, Hawaii, Indiana, Kentucky, Louisiana, Minnesota, Mississippi, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Tennessee, Virginia, Washington DC, West Virginia and Wisconsin.

Loanio was founded in November 2006.

For more information call 1-800-624-8830.