PERSONAL loan startup Lendable has struck a £200m deal with Goldman Sachs that will see the bank commit to buying loans originated by the peer-to-peer lender.

The investment will come from a division of the US investment bank called Goldman Sachs Private Capital, according to an announcement by Lendable’s chief capital officer, Rory McHugh, on LinkedIn.

London-based Lendable uses automated underwriting technology to offer instant decisions on consumer loans. McHugh was hired in March 2018 with a mandate to spearhead efforts to raise capital.

Goldman’s investment comes on the heels of Lendable raising £500m from Waterfall Asset Management, NatWest Markets, and Varadero European Special Opportunities in June, McHugh said in a separate post.

The lender also raised £300m in an institutional funding deal with Castle Trust Capital in 2017.

This latest commitment brings the company’s institutional investments to just under £1bn within a two-year period.

Read more: Lendable hits £100m lending landmark

Lendable offers P2P loans up to £20,000 with interest rates of between 7.5 per cent and 49.9 per cent.

The average size of a loan issued through the platform is approximately £5,000 with interest in the “mid-teens” over a 43-month repayment term.