the Money platform was launched in the UK. Money Platform is a peer to peer lender that targets 3-12 week short term credit. After participating in FCAs Project Innovate incubator program, Money Platform has received all consumer credit clearances from the FCA, making it the only short-term P2P authorized lender in the UK. The company says that after just two months of a smooth launch, it is seeing strong demand from borrowers and lenders.
The Money Platform said it identified a gap in the short-term loan market, traditionally served by banks and payday lenders. Its mission is to provide loans at lower interest rates to creditworthy people who have a job and are able to repay the loan in full within three months.
The company says the short-term loan market continues to experience strong customer demand with further growth expected in the coming years, while noting that strict FCA regulations have forced a number of lenders out of the business. Marlet.
The Money platform explains that it is able to offer more competitive interest rates than existing short-term lenders by using its credit decision engine and only approving loans to people with a good credit rating. credit. The maximum loan at launch is £ 1,000, with an interest rate ranging from 0.3% to 0.7% per day. With a “representative APR” of 165%, the average loan from Money Platform is often less expensive than unplanned bank overdrafts and other short-term credit providers.
The monetary platform described its operations:
- Investors can lend money to borrowers, and have the option of setting the rate (between 0.3% and 0.7% interest per day), the term and the amount of the loan.
- When borrowers repay their loan, investors receive their principal + 65% of the interest payable by the borrower of the loan. The remaining 35% is the administration fee for the TMP loan.
- All borrowers are fully vetted, and The Money Platform’s bespoke lending model ensures that money is only loaned to those who can afford it.
- Allows lenders to access rates previously reserved for credit card companies and short-term lenders.
- Borrowers must have a full-time job, have a good credit rating and meet strict affordability criteria
- Borrowing periods are from 3 weeks to 12 weeks.
- Interest rates vary from 0.3% to 0.7% per day.
- Prudent underwriting means borrowers only receive loans they can afford to repay.
“Historically, the short-term loan market has been viewed as ‘morally bankrupt’ – and with good reason, said Charles Balcombe, co-founder of The Money Platform. “With two years of planning, we are finally excited to present UK consumers with an affordable short term loan option and to shake up this industry with transparency and ethical practices. “