Swiss Cashare.ch recently launched as the first p2p lending platform in Switzerland. The company, owned by Michael Borter (link to German language interview) and Roger Mueller has partnered with the collection agency C&S Credit Management AG, which handles all monetary transactions. Interest rates and loan durations are set by borrowers and lenders bid in a 14 day auction (minimum bid amount is 500 CHF which is approx 500 US$). If the loan is fully funded further bids in the remaining auction period will cause the interest rate to drop in 0.1 percentage steps, while old bids are outbid.
The fee schredule includes:
For lenders and borrowers: 5 CHF fee for identification process
For borrowers: 19 CHF listing fee
For borrowers: 0.75% of the loan amount per year servicing fee
For lenders: 0.75% of the loaned amount per year servicing fee
This results in borrowers having to pay even if their loan does not fund.
An unusual point in the process is that lenders have to sign a written contract for each successful bid and send it via postal mail to Cashare. That seems a bit uncomfortable to handle.
As Cashare launched only recently there currently are only 4 active loan listings.
If you have used Cashare as a borrower or lender, please share you experiences in the forum. Thank you.
Kokos.pl launched the first p2p lending service in Poland. I interviewed Dorota Janik, PR Manager of Bluemedia, about the new service.
P2P-Banking.com: Can you please describe Kokos?
Dorota Janik: Kokos.pl is the first p2p lending or social lending system in Poland. It opens new possibilities in e-finance industry and fills a niche between offers of banks and other financial institutions.
The main advantage of Kokos.pl is being able to offer a much more beneficial interest range for both the lenders and borrowers, and a higher level of security than on other web based auction systems.
The most stress has been put on the borrower verification process. Kokos.pl uses Biuro Informacji Gospodarczej (BIG) to check borrowers credit history and to assign their rating in the system. Continue reading →
Earlier this month the first Australian p2p lending service iGrin.com.au quietly launched. Here is what Phil Hopper, iGrin's CEO told me, when I contacted him about iGrin's goals: 'We set out with the intention of being Australia's first and best P2P banking community. To date we have intentionally kept a low profile whilst we have gone about proving our business model and ensuring compliance with the Australian regulatory environment. The team behind iGrin has predominantly come from the banking industry and brings with it a wealth of product development, technology and lending experience. We have been impressed with the advances made in P2P lending overseas and are looking forward to applying these to the local Australian market and enabling everyday Australians to get great rates and great returns.'
Browsing the site, the main parameters are:
Borrower fees are 1% (for AA to D credit grades) or 2% (HR) or 90 AUS$ (whichever is greater)
Lender fees are 0.5 to 1.5% annual loan servicing fee (depending on credit grade)
Loans are possible for amounts from 2000 to 25000 AUS$ (approx 22000 US$)
Lenders can invest from as little as 100 AUS$ to a maximum of 25000 AUS$
There is a bididng process, where the borrower sets the initial (maximum) interest rate he is will to pay and lenders bid down the rate (like at Prosper.com)
Currently all loans are for a term of 3 years
The way the Australian credit rating works, simply appling (whether successful or not) for a loan may impact one's credit grade
A feature that differs from other p2p lending platforms is the 'Member direct loan' iGrin offers:
A service that iGrin provides to allow members to offer a loan direct to an individual. We will then undertake all of the transfer of funds and ongoing payments on behalf of the members. This is a great way for family or friends who wish to lend money to each other to have a third party (iGrin) manage all of the repayments and transfer of funds on their behalf. A formal contract is put in place between the two parties. It can also be a great way for someone to improve his or her credit rating.
While a family and friends loan is possible on other p2p lending services too, it is noteworthy that iGrin charges lower fees for Member direct loans than for normal loans.
Excerpts of answers to other questions I asked Phil Hopper, CEO of iGrin.com.au:
P2P-Banking.com: Which background does the management have?
iGrin.com.au: … The founders have over 50 years experience in Banking and Finance. The original founder and CEO is Phil Hopper who has a strong background in Banking and Technology most recently at the Commonwealth Bank of Australia and prior to that at Macquarie Bank. Continue reading →
Reuters has a video on German p2p lending site Smava.de. This is the first video I saw that's in english language. Features Alexander Artope, co-founder and CEO of Smava.
Duck9.com is positioning itself as a peer to peer lending service for college students. Lenders can invest a maximum of $10000. In the video below Duck9 founder Larry Chiang explains the business model and the benefits for lenders and borrowers.
The video is from October 2006. It might be a bit outdated. While Chiang says in the video that lenders receive a free $100 to lend, the site currently states: "NOTE: there is a SIGNIFICANT waitlist to be a lender. Money isn't accepted while you're on the waitlist".
Guus Drijver, head of Dutch p2p lending site Boober.nl, announced that boober plans to set up a site that will allow lenders to finance mortgages via p2p lending. This would require much higher loan amounts then those that are currently possible at Boober, where the maximum is 10.000 Euro. The aim is to have the first mortgage funded still in 2007.
