From the surveys we’ve been carrying out, we have obtained vital information on how we can improve the service for members (borrowers and lenders). We have decided to make a few adjustments to how members use the platform, which will improve its usefulness.
We will be introducing a loan directory where all loan requests will be submitted. It will work almost like the project system, but in this case, you will not be required to provide a lot of detailed information. The only necessary information will be;
- The amount you need (e.g. $5,000)
- The interest rate you prefer to pay (e.g. 12% p.a)
- The repayment arrangement (e.g. Monthly, weekly, quarterly, etc.)
- The period of the loan (e.g.
In addition, instead of lending directly to members, we will provide insurance to lenders so that they can readily finance requests posted by members. When you post a request, the amount of insurance the company will provide for your loan will be indicated next to the other vital information such as the amount you need.
Here is a sneak preview of the upcoming changes
Insurance for loans (Social)
If you have posted a project, you have probably received messages from people interested in funding you. However, most never actually do so because they are afraid their money will be lost. Questions related to ‘whether you have long term results to show the project actually works’ are common. By providing insurance, we will eliminate this uncertainty.
The insurance will be derived from the various fees charged on the website and will be calculated as follows.
- Direct Insurance: This will be bought directly just like the paid membership. The amount of direct insurance a member receives will be (Amount paid x 24). So if a member pays just $10, the total amount of direct insurance he/she has will be $240. All current paid members will be awarded this insurance from the membership fee they paid when joining. We will also add an extra coverage for these loyal members so their coverage will be calculated as (Registration fee paid x 36).
If you are not a member yet and would like this extra coverage, you should register before the system goes live.
You will not be restricted from buying more direct insurance in the future, so you can start small and build your coverage with time if you need to.
In case you fail to repay your loan, the company will refund the lender in 24 equal monthly installments of the outstanding amount.
- Social Contributions: When you refer members to join the platform, your insurance coverage will be increased whenever we charge them fees for using the platform (Example: fee charged when a loan request is funded).
We will be scrapping registration fee so introducing people will be much easier now. You can still introduce people directly or just post your referral links online.
So Total Insurance will be = (24 x amount paid) + social contributions
The registration fee that we charge currently has been singled out as a big obstacle by all members. Some borrowers prefer free registration, lenders on the other hand, believe the current registration fee is too small and finally, it can be a hindrance for those who want to refer others.
So, with the new system registration will be absolutely free.
Apart from insurance coverage, lenders will also be able to check a borrower’s rating before deciding whether to lend him/her money. This rating will be awarded by lenders whenever a borrower repays a loan. This will help highlight the best borrowers.
Please leave a comment to let us know what you think about these upcoming changes. Current member can also make suggestions that will be included in the new system. Just inbox your contributions to this account and if they are beneficial to other members, they will be included in the new system. Currently, the new system is on the testing stage and should be live within the next 21 days.