In 2005 a new method of financing was born in Great Britain: social lending. This is the online and innovative evolution of the ancient loan between individuals, which provides for financing relationships between two or more people, without the presence or intercession of a bank or financial company. Arrived 10 years ago also in our country, this solution seems to be currently attracting different subjects, without however reaching a widespread reputation. Let’s see together how the system works, why it is to be considered a safe system and what are the main actors in this context.
What it is and how it works
The principle underlying the loan between private individuals is the substantial absence of banks or financial companies. In this reality, in fact, applicants and the subject that grants the amount are private individuals who interact directly with each other thanks to the use of dedicated portals which, as is the case in the most traditional online markets, are intended to represent a meeting point between supply and demand. while also protecting the security of the loan itself. The advantage, as can be guessed, is a decrease in the cost of the loan itself, given the absence of an intermediary and therefore of an “important” transition such as that of the bank.
Compliance with the procedures and control of the subjects, as happens in the case of traditional loans, are however guaranteed by the platform, which takes care of assessing the profile of the applicant as a bank would actually do. The analyzes on the applicant are carried out before “presenting” it to those who have the capital to invest, or better to lend.
In addition to representing an excellent opportunity for those who are looking for a loan, this solution also represents an excellent investment solution for lenders who have the opportunity to diversify their investment portfolio, distributing it on multiple loans and therefore minimizing the risk.
The procedure therefore appears safe and guaranteed, but is not yet widely used in our country. In fact, the Italians’ approach still seems to be influenced by the widespread diffidence addressed in general to the world of online transactions, not surprisingly, the success of this formula is directly proportional to that of e-commerce in the various regions of Italy. Lombardy is therefore the queen in the use of this system.
The reference portals
There are two main active portals on this front: Smartcal and Fastaportal.
Fastaportal is a portal that allows you to request a specific sum of money (between $ 1,000 and $ 15,000) to be returned in a period of between 2 years and 4 years. During the request, the subject will be asked to forward his identity documents, the latest paychecks, the latest CUD and any existing loans.
At this point, the portal that studies the applicant’s profile and assigns it a rank, usually between an A and an E (and the related intermediates), enters the scene. To a different rank, different interests will correspond, precisely because the rank is an index of the risk connected to the profile of the applicant.
At this point the figure is placed in the market place visible to investors, who through the granting of small loans (which oscillate around 30 USD) can cover the figure.
Similar is the way Smartcal works. The platform allows you to apply for a loan with a rate of up to 5.60% and to present yourself as a de facto lender by investing only 100 USD and being able to count on profits that can reach up to 6.50% against a very small and simple management investment. The numbers linked to this portal are decidedly good, since we calculate more than 6,000 active lenders, 5,000 loans disbursed, 25 million disbursed, really important numbers if we consider that it is a single portal.