Now, Marcus will be providing home improvement loans ranging between $3,500 to $40,000 for periods of three to six years. Marcus previously offered loans topping out at $30,000.
The new offering fits in with Goldman Sachs’s larger plan of using Marcus as the foundation for a larger retail banking line. The new product also brings Marcus close to achieving a $13 billion mark in loan origination over the next three years, a number mentioned by Martin Chavez, chief financial officer for Goldman Sachs in November.
Whether this home-improvement loan product is indicative of Marcus’s interest in offering other home-related loans such as mortgage is unclear. Goldman Sachs declined to comment on the matter.
Just like its personal loans, Marcus’s home improvement loans have no sign-up fees, prepayment fees, or late fees. Customers are, however, required to pay interest for the additional days.
The application process is entirely online. Once approved, the user can receive the funds within five days.
Since its founding a little over a year ago, Marcus has proved to be a valuable business to Goldman. Based on the bank’s 4Q17 earnings announced earlier this week, during 2017, Marcus originated over $2 billion of loans (it surpassed the $2 billion milestone in November), while its online deposits grew by over $5 billion.
Aside from the home improvement loans, Marcus offers a no-fee, fixed-rate unsecured personal loan and online savings accounts, which yields 1.3% interest.