The Peer to Peer (P2P) Lender to Borrower Revolution in Australia...
The P2P Lending revolution has already started in the UK, US, Netherlands and Italy and is now coming to Australia.
P2P technology allows Lending Hub to create a marketplace for money and lenders can invest in borrower's loans in an environment that uses similar security and information verification processes as the large banks. Now lenders have a new and alternate investment asset and borrowers can borrow online and set the maximum interest rate that they are comfortable with.
What's New on Lending Hub
Lending Hub is updating new features, keeping track of what's happening in the Australian loans market and posting interesting articles on our blog at blog.lendinghub.com.au
What is a Peer to Peer Loan?
2007-11-06A peer to peer loan (also called P2P or person to person) is when an individual or group of individuals lend directly to a borrower. Traditionally banks allow lenders to do this by placing their spare funds in a bank account at a low interest rate. The bank will then aggregate the funds from a number of individuals and lend money to a borrower at a higher rate. With P2P loans an online service (such as Lending Hub) will create a platform that allows borrowers to provide credit relevant information in a safe and secure environment and lenders will be able to bid on the amount they want to lend and at their selected interest rate. This unique lending model reduces the overheads (typical of larger banks) and provides a better rate for the borrower whilst ensuring decent returns for the lenders.
Lending Hub - Community Borrowing and Lending
2007-11-06Lending Hub will bring to Australia the first true community powered social borrowing and lending service. Person to person lending is an old concept that can now function real-time through an online medium and essentially involves a number of lenders bidding on a borrower's loan listing up to the borrower's predefined maximum interest rate. Lender's can select which borrowers they would like to lend against through a range of credit rating and information provided in the loan listing application process. Lending Hub simply takes out the banks and middlemen to bring better rates for both the lenders and the borrower.
How Secure is Peer to Peer Lending?
2007-11-07Lending Hub uses a number of verification steps and cross checks to ensure that security is maximised for both borrowers and lenders. Borrower applications include a thorough credit history check and ID verification to ensure that lenders are able to choose which loans they would like to fund using up to date and useful borrower profiles.
All transactions are processed in an encrypted and security enabled mode with fraud-checking of payers bank accounts. In addition Lending Hub uses a range of manual security and fraud detection mechanism to review all activity to maximise the lender and borrower experience online.
New Lending Hub Blog
2007-11-27Dear Lenders and Borrowers...as we continue to ready Lending Hub to start accepting applications for lending and borrowing we have launched our new blog at http://blog.lendinghub.com.au.
We'll be commenting each week on the progress of Lending Hub's progress behind the scenes development and also talk about a few of the topics that will impact Social Lending and peer to peer loans.
Feel free to browse the blog anytime and stay tuned for when we go live!
Lending Hub Team
Banks Increase Interest Rates in Australia
2008-01-21Yet again the big banks have raised interest rates in Australia which affects everybody who has a loan and is making regular repayments or even people who are looking to buy their first home or car.
This shows how the large banks have developed almost a monopoly on consumers with little desire for them to compete and very quick to pass on rate rises to maintain high profit margins.
Lending Hub seeks to bring a new level of competition to the banks and to give borrowers fairer and cheaper personal loans. The Lending Hub technology also brings online loans direct to borrowers in their homes, a new technology that the banks aren't able to offer yet.
If you are looking to borrow online for your personal loan to fund maybe a car, or a holiday or a new home extention then why not join Lending Hub and the peer to peer loan revolution!
About Lending Hub
Lending Hub is Australia's first person-to-person lending community where you can borrow or lend money in a safe and secure online environment in real time. Learn more...
Peer to Peer Loans
Peer to peer loans (also known as person to person lending or Social Lending) is when individuals ... just like you ... are able to borrow or lend money from another person without using a bank or financial institution. P2P borrowing and lending effectively bypasses the banks with the objective of bringing you fairer interest rates whether you are a lender or a borrower.
Social Lending
Why is Peer to Peer Lending called Social Lending? This is because often P2P loans enable borrowers with diverse credit ratings and backgrounds to raise a personal loan that sometime a large bank may refuse them. By becoming a lender in a Social Lending marketplace you not only help other people acheive their goals in life but you can potentially earn a much bigger return on your investment than you can than just putting your money in a low-interest bank account.
Secure Online Transactions
The primary concern for us at the Lending Hub team is a safe and secure environment to both borrow online and to lend funds online. We ensure that all users are thoroughly verified and approved. Lending Hub is Australia's first true online loan platform that provides the framework and tools to make P2P loans safe and secure. It is now possible to start borrowing and lending money online in real time.
Personal Loans Online
Lending Hub provides a unique marketplace where you as a borrower can obtain a Personal Loans online by just completing a Lending Hub Borrowing Application (takes about 15 minutes only) and then creating your loan listing. where you set up your loan listing (how much you need, at what rate and what for) and then lenders bid on your loan up to your selected maximum rate! No banks at all just fairer rates! Learn more...
Fairer Interest Rates
Lenders are able to bid on loan listings (just like on an auction site). By selecting the interest rate and amount they want to lend borrowers are able to receive fairer interest rates as we cut out the high costs associated with the big banks and we allow the 'market' to set the interest rates on loans.
Lenders
Do you have some money to lend to verified borrowers and want to earn more than just the low bank deposit rates? Then you can start lending (from as little as $100) to approved and verified borrowers. We do the hard work verifying and checking the borrower's background whilst you get to choose how much and to whom to lend.
Types of Loans
Lending Hub will initially offer simple plain amortising Personal Loans with no security required. Both the interest rate and the monthly repayment amount are fixed for the duration of the loan. The loan funds can be used for personal uses such as consolidating debt, refinancing another loans, a deposit for a home loan or funding your education.