New Dimension In P2p Finance Launched

Oct. 12, 2010 - PRLog -- A NEW online marketplace has been launched that aims to revolutionise the way in which people borrow and lend money directly with each other.  The site, www.RateSetter.com, aims to reduce the cost of borrowing and increase returns to savers through better rates.

RateSetter brings a new aspect to peer-to-peer (P2P) lending by allowing savers and borrowers to enter into shorter-term as well as medium-term loans.  Savers are now able to lend on a monthly basis for the first time, when other P2P sites in the past required the commitment of funds for a number of years.  In these new monthly markets, borrowers can roll their balance at the end of each month in the same way they do on a credit card.

In addition, the borrowers on RateSetter participate more actively in the setting of the interest rate.  This gives borrowers more control and means savers, by accepting the best current borrower offer, can lend their money immediately.

RateSetter has also pioneered an added measure to protect savers’ funds.  In addition to credit checking all borrowers and imposing strict criteria before accepting them, RateSetter has introduced a ‘Provision Fund’ that will protect savers against borrower default.

Savers can currently get returns of up to 6.4% on RateSetter, whilst borrowers can take loans at rates below 7%.

RateSetter founder and CEO Rhydian Lewis said: “RateSetter was born out of growing consumer demand for an alternative to bank lending and the need for greater flexibility than is offered by other P2P lending sites.  RateSetter brings a new dimension by simplifying the offering for lenders and giving borrowers the option to take out a cheaper, variable rate loan.  We believe this model will enable P2P to become a mainstream part of consumer finance.

“Our ambition is for RateSetter to reduce the cost of borrowing and increase returns to savers at a time when the traditional providers of consumer finance are doing the opposite: increasing the gap between the rate savers receive and the rate borrowers pay.  RateSetter shrinks the middleman and empowers savers and borrowers to decide the fair level for interest rates.”

RateSetter is now available to residents throughout the United Kingdom at www.RateSetter.com.  All users are first identified on sign-up and all those applying to borrow are assessed for their creditworthiness and the affordability of their loans.

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About RateSetter: (www.RateSetter.com)
RateSetter is a peer-to-peer (P2P) lending exchange, allowing people to lend and borrow money directly with each other, setting their own interest rates and not being forced to take a rate set by a bank. RateSetter will cut the cost of borrowing and enable those already in debt to get out of it quicker, while at the same time increasing returns for savers. For borrowers there are no penalties for early repayment.

RateSetter was launched in September 2010 and is available to customers throughout the United Kingdom. Savers can invest as little as £100 and borrowers can get loans of up to £20k. RateSetter uses industry-leading fraud prevention and credit checking services, and has created a Provision Fund to further protect savers.

RateSetter is licensed by the Office of Fair Trading, the body responsible for consumer finance in the UK. RateSetter is a member of the Consumer Credit Trade Association and the fraud prevention agency, CIFAS.