Peer-to-peer lending

Peer-to-peer кредитование

Co-founder of the investment company Bona Cousa Michael Shainsky told how P2P lending can fill the gap of Bank loans.

– What prospects do you see in the segment of peer-to-peer lending?

Service mutual lending is becoming increasingly popular. The reason is obvious: the Ukrainian banks for several years does not make loans or to individuals or business. At the same time, there are a large number of people in need of money. And there are those who are ready to provide financing under certain conditions. We decided to take on the role of Mediator with a capital “P”, which drives between private investors and borrowers, with the main objective the Bona Cousa – to ensure that the transaction was transparent, legally correct and the parties agreed among themselves on mutually beneficial terms.

– How does the process of obtaining loans?

For example, in Bona Cousa addresses the potential borrower, which have, say, a apartment in Pechersk market value of 120 thousand dollars. Under it a person wants to take loan of about 80 thousand dollars. The first thing we have to make sure that real estate is all right. She is not arrested, is not the subject of litigation, is not in the loan. If claims against the borrower and its housing there, we seek him investors, the necessary amount of money. Client and investor meet, discuss the conditions and in the presence of a representative of our company issue at the notary the loan agreement.

– Who is the investor in such transactions?

Among the investors are residents of Ukraine and those who live abroad: in Germany, USA, Israel. All of them have in common is that they do not trust banks.

– Do you have some kind of system where you check investors? Or work with anybody willing to lend?

Historically, the first investors were our friends. Then they began to bring their friends, relatives, acquaintances. So we knew almost everyone personally knew could trust him or not. Now that a Bona Cousa drawn investor, or on someone’s advice, we conduct an interview with him, asking him the documents for verification.

– I can tell by the example, than your company different from classic Bank?

Let’s remember how processes at any Bank. First, a person submits an application for issuance of credit, accompany it with a ton of paperwork. Have the client ask for additional documents, statements, reference. Assess its property, demand to take out insurance. All this takes a lot of time and nerves, and as a result the answer sounds: “Your official income does not allow You to take credit.” We make it simple. The borrower has the property. He can get a loan that does not exceed 70% of its appraised value. The average interest rate on the loan is around 24% per annum. And there are no hidden fees, payments, insurance.

– What happens if the borrower is unable to repay the loan on time?

There is a clear regulatory framework which allows the lender to get their money back. In such cases, many investors prefer to communicate with troubled borrowers themselves. But if you need our help we are understood, is also connected. In General, a bad peace is always better than a good war, and the parties need to negotiate.

– How do you “weed out” clients, which actually are scams?

Unscrupulous clients, of course, occur. Someone wants to take a loan for an apartment, says nothing that it was bought in marriage, either for housing, where it is spelled out and live minor children. Some clients make a loan to deliberately not to pay the debts. But we value our reputation earned over the years, and act only in the legal field. And if we have creeps in the slightest doubt about the honesty of the borrower, we refuse to deal with him. Where better to lose profit than to engage in endless litigation with those who want our help “rotate” semi-legal transaction.