“As a responsible social lending marketplace we are actively trying to improve on the quality of borrowers as well as ensure that they can afford their loans, and the new capping rates should prove to be a step in the right direction”
London, UK (Vocus/PRWEB) 2 March 2011
YES-secure, a trusted social lending and borrowing marketplace, has introduced new maximum lending rate for each of its A*– E markets, while maintaining the existing overall cap at 27.5%. The introduction of the new individual cap on lenders’ offered rate for each market has been done with the view to provide exciting rates to creditworthy borrowers. Launched in June 2010, YES-secure has established itself as a successful peer to peer social lending platform in the UK consumer loans space. With its focus on the community angle, it aims to provide a fair platform to the lenders as well as borrowers.
YES-secure has considerably tightened the underwriting policy over the last few months. However, the average rates being offered here appear too high to attract sufficient number of higher credit rated borrowers, resulting in a low number of funded loans. The level of underwriting rejects is too high once borrower listings have reached 80% or more funding level; currently 9 out of 10 potential loans are rejected during underwriting.
YES-secure has decided to introduce a more balanced lending rate on the platform in order to attract better credit rated borrowers, to match with the lending funds available. The maximum lending rates have been set individually for each market which some of the lenders have suggested previously on the forum. The new maximum lending rates for A*, A, B, C and D markets are 18%, 19%, 21%, 23% and 25% respectively. The higher risk E market remains unchanged and is still capped at 27.5%. The latest rates are bound to encourage competitive bidding and offered rates for the borrowers.
“As a responsible social lending marketplace we are actively trying to improve on the quality of borrowers as well as ensure that they can afford their loans, and the new capping rates should prove to be a step in the right direction”, said Dr Chandra Patni, the YES-secure CEO.
YES-secure follow an eBay-style business model where lenders place bids on loan listings through the online auction platform. As a routine, market forces drive the loan rates and YES-secure only intervene to ensure that loans are not being offered at unfair rates. The new lending caps should also work to factor in an effective risk-evaluated interest rate to attract and retain a suitable category of borrowers in order to maintain a low potential default rate. We hope and believe that this step will accelerate the activity on the platform and benefit both borrowers and lenders.
More information regarding YES-secure can be found at http://www.yes-secure.com.
For more information, please contact:
Ms. Mala Chauhan
0871 221 9410 extension 5440
153 East Barnet Road
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