Kabbage will offer online personal loans starting this week as it expands its product lineup and tries to compete head-on with the likes of Lending Club and Prosper Marketplace.

Kabbage, based in Atlanta, will use an automated underwriting process to make unsecured loans of up to $35,000 with 36-month or 60-month terms. It will lend at fixed interest rates ranging from 5.73% to 24.75% and will accept borrowers with credit scores as low as "near prime," said Rob Frohwein, chief executive. The new loan product, called Karrot Personal Loans, will be available starting today.

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