Do you need money to consolidate your debts or start your business? Until now the way to obtain it had been through the bank, financial or between friends and family.
The disadvantage of these mechanisms is high-interest rates, hidden fees or even Problems with your acquaintances.
The Internet has changed the way people can obtain credit, through collective financing, or loans between individuals.
How loans between individuals work online
Collective financing has always existed. For example it is very common in schools with spring competitions where candidates sell tickets or products to finance.
Internet loans between individuals are also a form of collective financing and work in a very similar way: someone asks for the help of several people to collect the money as a debt, that is, they will pay that loan with interest.
In this way, the interest paid translates into yields for lenders or fundraisers
Those who play the role of the bank: assume the risk of debt and keep the returns.
Technology has allowed the creation of collective financing platforms through loans. In this way the lenders can choose who they want to help with their money and know the behavior of the loans they have funded, income received, commissions paid, etc.
This is possible thanks to the Internet since it is cheaper to manage an online platform than hundreds of branches. This cost reduction eliminates the gap between the interest charged by the financial companies and the interest paid to the savers.
Easy Bank is the first platform in Mexico that makes collective financing possible through loans between individuals.
On the one hand: from the website, it is possible to request a credit and follow the funding process until the cash delivery as well as the monthly payments. On the other: the fundraisers can choose the credits where they want to lend their money.
Pros and cons
Interest rates are lower: a loan platform between people can offer you cheaper interest rates ranging from 8% to 30% per year.
They are online loans: online platforms receive applications every day of the year, at any time, all the service is through their website.
Real-time account statements: Most loan platforms allow you to know the status of your credit in real-time: from the time you complete the application until you make the last payment of the credit.
Excellent history is required: because the risk is assumed by people who do not have the capacity of a bank, these platforms are very demanding and only approve applications from people with a good credit history.
At the moment, while this article is written, there is no regulation of this model by the Mexican authorities. However, the National Banking and Securities Commission already works in a regulatory framework.
Currently, there are different platforms for collective credit financing (loans between individuals), each one has different characteristics in its credits. If you want to be part of a platform as a fundraiser or as an accredited person, know the terms of its platform: returns, interest, commissions, etc. On an authentic P2P platform, the anchorages directly choose the credits where they want to lend.