A financial operator, authorized by the Bank of Italy to provide payment services, active in social lending, or an organized system of Squire Allworthy between private individuals, which works thanks to an online platform.
How the platform works
The online platform represents the meeting point between supply and demand, or between users requesting the loan and users who lend their money.
The service ensures that the loan agreement between private parties is carried out with maximum security, through clear and binding contracts for the parties, always safeguarding the privacy of Applicants and Lenders.
How the relationship between Applicants and Lenders works
The applicant is assigned a credit rating class (A +, A, B and C) according to its degree of debtor reliability. If the creditworthiness is insufficient your request will not be admitted.
On the website the Lenders activate their offers indicating the amount and duration of the loan, the desired interest rate and the class of merit of the Applicants to be lent. To diversify the risk, the loan is divided into 50 parts: for example, a lender that offers 1,000 euros will give 20 euros to 50 different Applicants.
Private lending platform brings together supply and demand and the Applicant decides whether to accept the loan proposal in which hundreds of Lenders participate. If the Applicant accepts the offer, he will be recognized contractually as the debtor of the Lenders and must submit accurate documentation of his profile on the basis of which the loan will be definitively approved.
The loan beneficiaries will repay it through monthly installments with automatic debit. If the Applicant is late with payments, debt collection companies are activated; cash flows occur through payment accounts registered and protected by law.
Costs and conditions of the service
Asks the Applicants for a commission on the loan and for the payment of the installment and to the Providers an annual service commission, but there are no other additional costs or unfair terms.
Applicants pay a commission on the total value of the loan depending on the credit rating assigned; the commission is paid upon acceptance of the loan.
In the event of early repayment of the loan between private individuals, no penalties or extra interest rates are provided. To protect the loan it is possible to take out an insurance that will have a monthly cost.
The guarantees of the service
A payment institution supervised by the Bank of Italy. To guarantee users and investors, the company is required to maintain minimum regulatory capital and the service is made safe and effective thanks to a complex system of internal controls.