– London, UK
YES-secure, launched in the UK in June 2010, have introduced an innovative way to get a loan for borrowers by securing funding from real people. Like eBay, YES-secure acts as a marketplace for lenders to bid on the borrowers’ loan listings, resulting in a consumer regulated marketplace.
Borrowers can create a loan request on YES-secure specifying the amount, duration and preferred rate of interest for the loan after the registration process. They receive a grading varying from A* to E based on their credit score retrieved from Callcredit. The loan listing can last up to seven days and multiple investors place bids on it at the interest rates they choose. The borrower is then offered the loan at an average interest rate.
Once the loan is completely funded, lenders can make bids at lower interest rate to outbid those at higher interest rate, which goes to reduce the offered interest rate for the borrower. Friends and family can be added to the borrowers’ YES-secure connections and bid on their loan listing up to 10% of their loan request at the rate they choose, lowering the interest rate further. And once the loan is partly funded thus, it might accelerate others lenders’ contribution to it.