E*Trade Bank, which acquired RV retail loan provider Ganis Credit Corp. last December, plans to offer a program where consumers could use home equity loans to finance the purchase of an RV, according to Ed Arienti, vice president of recreational product loans at the unit of E*Trade Group Inc.
E*Trade has offered home equity loans to retail buyers of RVs and boats through a select group of 150 dealers and the program was so successful that the bank and online stock brokerage firm will expand the program to include its entire dealer body, probably by the fall, Arienti said.
The home equity loan program is not for the credit challenged or customers with “damaged credit,” Arienti stressed. Instead, it is for “otherwise creditworthy persons” who may need to consolidate their debts, or for whom “the loan-to-value ratio” on the RV they are planning to buy it too high, he said.
The home equity loan program could also be used by customers who are trying to sell their current RV through consignment or sell it directly to another consumer without trading it in to a dealer.
The test program was extremely successful because it allowed participating dealers to complete sales that otherwise would not have occurred, Arienti said.
E*Trade is the first banking company involved in RV retail lending to offer home equity loans to consumers buying RVs, Arienti believes.