YES-secure Peer to Peer Lending

Feb. 1, 2011 - PRLog -- Martha wanted to buy a new car when her old Rover gave way and required around £2,500 to buy the one she liked. Her bank offered her a personal loan at a shocking 29% for £2,500 for a loan term of 3 years. This was way beyond her means. As she enquired amongst her friends for a more suitable loan, one of them suggested peer to peer lending as a possible option. Martha decided to give it a try. She approached YES-secure.com, a social lending marketplace in the UK, and after a quick online registration, listed her loan request. Within the next three weeks she had got the much wanted loan at a more affordable rate which she could easily payback in the next three years with the option to foreclose the loan anytime without penalty.
How does P2P lending manage loans at reasonable rates and that too for borrowers with not so perfect credit rating? It does so by cutting out middlemen with their huge overheads and big margins and letting the lenders and borrowers work out the loan between them.


YES-secure as a social lending platform

YES-secure entered the P2P lending market fray in June 2010 to provide concrete benefits to both lenders and borrowers. It encourages loan requests from all credit grades (A*-E) and has capped the maximum lenders’ rates at 27.5%. Borrowers can request for a loan for a plethora of reasons such as debt consolidation, vehicle purchase, marriage, holiday, surgery, business expansion, house improvements and student loan. Borrowers are encouraged to invite their social connections to their YES-secure network to bid on their loan requests at their desired rates. YES-secure arrange loans up to £25000 for duration of 1 to 5 years. Borrowers pay a one-time fee of £80 while lenders are charged 0.9%. Smaller loans get funded much faster on YES-secure and at a lower rate unlike banks.


How does peer lending work on YES-secure?

YES-secure follow eBay like business model. The borrower’s loan listing requests are listed on the online platform, indicating the required amount, interest rate and the duration of the loan. The borrowers are credit-checked through Callcredit and given a credit grade along with other relevant information like DTI ratio, stability, affordability and Reliability scores etc. This information is displayed on the listings for lenders to view and include in their decision making process. Lenders place their bids on the loan listings which suit their investment criteria and once the loan is funded, the bids with the lowest interest rate are combined to offer a fixed rate loan to the borrower. At this stage, YES-secure run stringent underwriting checks on the financial information provided by the borrower before finally approving the loan. If there is a discrepancy in the listed information and the bank or salary statements, the loan is not approved.


How to write a good loan listing?

The borrower’s loan listing and profile details should include their financial strengths as well as responsibilities including their monthly income and expenses. Providing a credible explanation of why the loan is required and how it will be paid back as well as a few indicators on the stability and reliability of a borrower can go a long way in getting a loan funded. The borrower’s promptness in answering the lenders’ queries with detailed, authentic information will potentially win them bids and a quicker funding. However, they can choose to be discreet about their personal and financial information by using their privacy settings on their profile.


YES-secure as an alternative asset class

YES-secure P2P lending is a hot investment option with average returns for lenders for all borrower’s loan listing going over 20% (AER). It caters to a much wider range of borrowers (A*-E credit scores) than its competitors which in turn fetches higher returns for the investors, as higher risk loan markets are likely to generate higher interest rates. YES-secure has an organized and easy to operate platform where new lenders can get started with YES-secure and P2P lending with as little as £10. Moreover, YES-secure diversify the risk quotient involved in unsecured lending by getting each loan funded through a large number of lenders.

YES-secure maintain an active secondary market for the loans to provide enhanced liquidity and investment option to the investors. The loan slices can be sold at a discount or premium to generate quick funds while other lenders can buy these to create an instant diversified portfolio.

YES-secure aims to provide affordable loans to borrowers and healthy returns to the lenders – a win-win situation for both!


More information regarding YES-secure can be found at www.yes-secure.com.

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YES-secure is a P2P social networking lending and borrowing marketplace which provides an online platform for borrowing and lending money and functions on the ebay model.