If you need to borrow a little less money you have a few different options. You can often borrow money quickly and easily from family and friends, apply for a loan from a bank or a credit company or “borrow by yourself” on the credit card. For some years now, however, you can also borrow from others online, through peer to peer lending. There are a couple, three players that will enable this new type of loan, and more will probably be added in the future. Most experts are of the opinion that peer to peer loans are something that is quite right in time.
Lendify is today the leading player in this type of loan. Lendify’s role is to act as an intermediary between those who need to borrow and those who want to invest savings capital. The type of loan offered is private loans and the lowest and highest loan amounts are USD 5000 and USD 300,000 respectively.
How to borrow
There are no differences between a “regular” lender and Lendify when it comes to the application itself. It is the same type of information that must be filled in, and it is about, for example, personal and financial data and of course how much you want to borrow and how long.
When the information is available to Lendify, a credit report will be made and the information from it will be used to place your application in any of classes A, B, C, D or E. Lendify’s marketplace. It is then up to the investors to review the information and make a decision on whether or not to make an investment.
Once your loan is 100% subscribed, Lendify will pay your money to your pre-registered bank account. Then your task is to repay under the loan agreement.
Is it getting cheaper?
The natural question is whether it will be cheaper to borrow from others online through a loan than to take a “regular” loan. Basically, it should be. The most important factor is that investors are in a way competing for investment. Matching thus becomes a kind of competition to be able to offer the lowest interest rate.
The fact that Lendify charges a kind of brokerage fee counteracts this to some extent, but the fee for most loans is so low that it is still covered by what is saved from not turning to a more traditional lender.