Earnest, a San Francisco, CA-based merit-based loan program for financially responsible graduating students and young professionals, closed a $15m funding round.
Backers included Andreessen Horowitz, Atlas Venture, Collaborative Fund, First Round Capital and Maveron plus a small group of angels.
The company intends to use the funds for its expansion plans.
Led by Louis Beryl, co-founder and CEO, Earnest uses its underwriting technology to understand and evaluate individual borrowers. Its data-driven evaluation takes into account an applicant’s full financial profile, not simply their credit score, considering their current and future potential, as well (it analyzes income, savings, monthly budget, education history and future income potential). Qualified applicants can choose one-year loans at 5.5 percent interest (APR) or two-year loans at 6.5 percent interest (APR) of $1,000 to $20,000.
After offering programs across Massachusetts and Florida, loans are now available in California, New York, Pennsylvania, Texas, Connecticut, New Jersey and Utah.