Virgin Enters US Money Markets With Loans Company

Wed, 17 Oct 2007

Richard Branson’s Virgin Group is looking to capitalise on the US sub-prime lending crisis by entering the loan market.

On Monday, the group launched its US Company – Virgin Money USA – designed to manage consumer loans between friends and family .

The move comes during a turbulent time for borrowers in the US who are finding it increasingly difficult getting approved for loans by banks and other financial institutions as a result of the crisis.

Asheesh Advani, chief executive of Virgin Money USA, commented: "This is very timely because of what's happening in the US credit markets. Banks in general are tightening up, so this is a wonderful alternative for people who are looking to seek a loan ."

Virgin will enter the 'peer-to-peer' lending industry that arranges lending by matching a borrower with a lender and cutting out the need for a bank in the process.

"The Virgin Money proposition will be very much about creating loans and mortgages that fit you and that help you keep money in the family as opposed to giving it to a bank," Advani added.

Virgin USA will manage loans between relatives and friends after it acquired a stake in CircleLending Inc, which specialises in this type of lending.

Virgin Money, the financial services arm of the Virgin Group, already operates in the UK, Australia and South Africa .
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