The lending platform, iBAN, privately launched its first seed investment round on the Seedrs platform on December 15th, seeking 100,000 Pounds before March 15th to develop their money management and Crowdlending app, iBAN Wallet. The app will connect lenders and borrowers directly, helping them to control their finances and transfer money while on the go. Through the app, users will have a modern money management tool, integrated with gamification and risk management. More information on iBAN Wallet can be found here – https://form.ibanonline.com/ibanwallet/.
iBAN will be the first lending company in the world to combine Crowdlending on a global scale with a Guarantee Fund to protect its investors’ money. Crowdlending, also called peer-to-peer or P2P lending, is a form of alternative financing that is exploding in countries all over the world – many people lend their money, which, when pooled together, funds a loan to an individual or business. iBAN CEO, Daniel Suero Alonso, says that ‘by operating across two continents, Latin America and Europe, we have identified a large gap in the market that provides money to those that really need it, and market-beating returns to those looking to lend’.
iBAN bases its Guarantee Fund on past market performance and the average default rate of the loans it furnished to ensure that it always has enough money on hand to cover the relatively few cases in which a debtor cannot repay the loan amount. This Guarantee Fund is very rare in the global Crowdlending industry and makes iBAN a lower-risk choice for investors.
Lenders can choose to lend through iBAN or directly with borrowers. Going through iBAN, lenders get rates of up to 8.5 percent APR and have the option to be covered by the Guarantee Fund. At a time when interest rates for savings accounts at traditional banks are at a record low, Crowdlending can offer an alternative way for investors to earn more from their money.
Going directly through borrowers, lenders can pick and choose the investments that appeal to them. As lenders receive returns on their investments, that money is reinvested into new loans, thus enabling them to receive compounding returns. Lenders are free to withdraw their money at any time.
Lenders may also choose to invest their money in an iBAN Social account. While this money is not protected by the Guarantee Fund and the lender collects no interest, the funds go towards funding social and ecological programs with innovative ideas.
In choosing who qualifies to receive iBAN loans, the company requires that the recipient be a property or vehicle owner and have a good history of credit. Because most of the loan recipients are lower-risk borrowers, iBAN is able to offer interest rates as low as a 2.5 percent monthly rate for those most qualified. Loan recipients can request as little as 1,000 pounds or up to 25,000 pounds for loan periods ranging from ne to five years.
iBAN users obtain loans for a variety of purposes, including funding local social programs, conducting home renovations, purchasing vehicles, and starting businesses, to name a few. iBAN prioritises loans that give back to the community, but many purposes are considered and accepted. Loan recipients can pay back their loans as quickly as they like, with no penalty for early repayment.