There are certain money lending mechanics that money lenders should be aware of in the turbulent global markets. Even in Singapore. Lending money can earn money in interest. Lenders generate profit while the borrowers get the money they need on the short term. Community lending is a way to do this which can make an entire community extra money through interest. Community lending happens with credit unions and are generally well equipped to assist potential borrowers. These borrowers can bring a positive return on money lent to them.
A potential borrower puts in a request for a dollar amount. The borrower states why they need the money and a description why the lender should give it to them. The lender will decide whether they can provide this money to the potential borrower. If it is a community lending operation small contributions are made by the many lenders in the community.
There are online sites which can handle the kind of community lending mechanics. These sites tend to take a percentage of the interest and from the late payments and collections. The sites take care of all aspects of loan origination and they are compensated for it.
A borrower will request from Singapore money lenders a specific percentage rate. Lenders will make bids on a part of the loan. Lenders will specify the minimum rate they will offer to be paid back. In community loans, when the loan is fully funded, the rate can go down as the lenders try to outbid each other for the rate they are prepared to take. A borrower might ask for $2,000 at 10%. With active bidding they might receive the same amount of money for a much smaller rate, like 7%. Lenders can ask questions to the borrower. These questions and their answers can be posted on an official public forum or be asked in private.
The more worthy of a loan a borrower seems the more likely they will get their desired interest rate or better. Lenders vying for the loan will look to outbid one another. The outbidding will increase in the last few hours before the deadline. The borrower’s credit level is the biggest consideration the lenders make. If the borrower has an AA rating they will be given a better rate, but if they are high risk their rate could see as much as 35% for small loan amounts. Loans are collected over monthly payments dependent upon the terms proposed.
A potential borrower puts in a request for a dollar amount. The borrower states why they need the money and a description why the lender should give it to them. The lender will decide whether they can provide this money to the potential borrower. If it is a community lending operation small contributions are made by the many lenders in the community.
There are online sites which can handle the kind of community lending mechanics. These sites tend to take a percentage of the interest and from the late payments and collections. The sites take care of all aspects of loan origination and they are compensated for it.
A borrower will request from Singapore money lenders a specific percentage rate. Lenders will make bids on a part of the loan. Lenders will specify the minimum rate they will offer to be paid back. In community loans, when the loan is fully funded, the rate can go down as the lenders try to outbid each other for the rate they are prepared to take. A borrower might ask for $2,000 at 10%. With active bidding they might receive the same amount of money for a much smaller rate, like 7%. Lenders can ask questions to the borrower. These questions and their answers can be posted on an official public forum or be asked in private.
The more worthy of a loan a borrower seems the more likely they will get their desired interest rate or better. Lenders vying for the loan will look to outbid one another. The outbidding will increase in the last few hours before the deadline. The borrower’s credit level is the biggest consideration the lenders make. If the borrower has an AA rating they will be given a better rate, but if they are high risk their rate could see as much as 35% for small loan amounts. Loans are collected over monthly payments dependent upon the terms proposed.