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Karrot is an online personal loan provider that is dedicated to convenience. Personal loans from karrot.com can be used for just about anything such as medical expenses, debt consolidation, or even to pay for holiday or vacation expenses. Let’s find out more.

Application process

There is no fee to apply for a loan from Karrot. You must be 18 years or older to apply, except in Alabama and Nebraska you must be at least 19 years old. Loans are available to all U.S. citizens who live in any state except Iowa and Wisconsin.

The online application process asks for basic demographic information and what you plan to use the loan for. A credit check and cash flow verification are also part of the application process.

Lending terms

The range for loans from Karrot is from $5,000 to $35,000 and the limit mostly depends on your credit score and cash flow. Interest rates are between 6.44 percent and 27.22 percent, depending on credit and income. The payback period varies from 36 to 60 months.

There are no prepayment fees, but there is an origination fee that ranges from 1.05 percent to 4.75 percent charged to the amount you receive. For example, if your origination fee is 4 percent, then on a loan of $10,000, you would have to pay $400. So you end up receiving only $9,600 when the loan is finally disbursed. The interest charged, however, is calculated on the entire $10,000 amount.

Loan funding

All loans obtained through Karrot are issued by Celtic Bank, a Utah-Chartered Industrial Bank, Member FDIC. The parent company of Karrot is Kabbage which services the small business loan market. Initial funding for Kabbage came from a $500,000 convertible note followed by $1.5 million from angel investors. Currently, Kabbage enjoys relationships with Silicon Valley Bank, Victory Park Capital, and Guggenheim Partners as sources of capital.

The biggest advantage to Karrot is speed. The application process in done 100 percent online and your bank account and social networks are part of the required data. According to the Karrot website, approval speed is measured in minutes. It then takes a few days for the money to reach your bank account.

Consumer complaints and reviews

Karrot’s parent company, Kabbage, has been accredited with the Better Business Bureau since Jan. 31, 2014. The company carries an A+ BBB rating, and 3.68 stars out of 5 based on customer reviews. Of the 15 complaints closed by the bureau in the last three years, seven concerned billing and collection issues, and two were related to advertising and sales.

On Supermoney.com Karrot has a 4 out of 5 star rating. Many customers who rate the company highly like the speed of approval and funding. There were also many positive comments about customer service. Negative ratings were mostly from people who did not qualify for a loan. Many also complimented the website’s clarity and ease of use.

Is Karrot a good choice?

For those with fair to good credit, Karrot should be a contender. If speed and convenience are high on your list, then few can compete with this online lender. On the other hand, if the absolutely lowest interest rate is your top priority, you might want to continue shopping around.

Vincent Chough is a writer who earned his medical degree from the University of Pittsburgh School of Medicine and practiced in the U.S. for 10 years. He now lives in Argentina, where he’s involved in NGO management at the executive level.