London (PRWeb UK) May 21, 2010
YES-secure.com is expected to launch its online web social lending and borrowing marketplace next month in the UK in competition with Zopa and will allow consumers to directly lend and borrow money to each other online, cutting out the middle man.
Online lending sites are becoming increasingly mainstream in recent years as consumers become disillusioned with the banking system and search for lower rate loans.
YES-secure.com founder, Dr Chandra Patni said, "We go a step further by incorporating social networking into the process, allowing lenders and borrowers to forge relationships with each other in a similar way as Facebook and LinkedIn. Members can invite friends and family members to join their list of 'network connections' on the site where they can then lend securely to each other and interact via a chat facility and message forum".
Dr Patni said: 'By adding the social element into borrowing and lending we are providing a network which is open and enables people to actually get to know who they are lending to, or borrowing from.' He added: 'It may be the case that you want to lend to a friend or family member, for example a student who needs a loan. By using the site you can offer them a better rate than the banks and you can formalise the deal as a personal contract between friends.'
YES-secure.com will enable lenders to lend as little as £10 to £25,000, with the maximum lending to one person being £500 to reduce the risk of borrower defaults. However, if the borrower is on the lender's list of network connections, the lender can lend higher amount.
The lenders decide the rate at which they will offer the money, and we expect rates will be typically between 7% and 15%. We do not impose caps on the APRs but there are internal measures in place to prevent a loan being agreed at an unfair rate.
Consumers signing up to our site will be credit checked by YES-secure.com using CallCredit and will also be given a reliability rating so that lenders are aware of the individual borrower's creditworthiness. In addition, by having a large network of creditworthy connections, we rate such a borrower a higher reliability index from 1-star up to 5-stars in a similar way as eBay does for sellors.
We have decided not to have any fees during our first three months of live operation, and after this time our fees will be lower than Zopa as borrowers will pay £80 per loan arrangement and lenders will be 0.9% of the amount leant. Both fees will be included in the loan APR. Fees at Zopa are currently £124.50 for borrowers and 1% for lenders.
Contact: Dr Chandra Patni, chandra(dot)patni(at)yes-secure(dot)com, 0203 006 3791 or 0780 939 1290
Checknet House, 153, East Barnet Road, Barnet, EN4 8QZ, UK
Tel: 0871 221 9410
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