YES-secure is a social network lending and borrowing website in the UK peer-to-peer lending market. It acts as a marketplace for lenders to bid on borrowers’ loan listings in an auction-like process whilst cutting out the middleman and bypassing traditional intermediaries such as banks.
UK savers are offered a new way to beat inflation and earn better returns than by investing their savings in traditional investment vehicles whilst borrowers are able to pay back their loan to real people.
YES-secure.com allows lenders to bid on a borrower’s loan listing at interest rates they choose, encouraging them to lend small amounts to a number of borrowers in order to diversify their portfolio and hence spread their risk, collectively funding the requested loan amounts.
Borrowers have the ability to offer additional information about their situation combined with their credit grade ranging from A* to E grading retrieved from Callcredit enabling lenders to make judgement decision as to whether to lend.
Lenders can choose to lend to A* borrowers with a lower interest rate with minimal risk of defaults compared to E borrowers with a higher interest rate but a higher risk of default.
“Since the launch of YES-secure in June, interest in the website has been overwhelming and we now have 2,242 lenders and borrowers registered as members” said Dr Chandra Patni, CEO of YES-secure. Loan requests range from debt consolidation and student loans for tuition fees and living costs to car loans and Christmas loans for borrowers looking for funding to help them out over the Christmas period.
Since the website’s launch earlier this year, 67 borrowers have been disbursed loans from YES-secure lenders totalling £200,700, with lenders achieving over 20% average earnings rates (AER) for all markets on the YES-secure platform.
The business launched a secondary market in December 2010. This market enables lenders to buy and sell loan slices at a premium or discount. Potential buyers for the loan slices are able to view detailed information about the repayment history of the loan part enabling them to make an informed decision.
YES-secure has recently announced that corporate lending will be introduced at the beginning of next year, enabling lending to businesses.