QuidCycle is launching a new peer-to-peer UK-based online lending service. Its premise is simple, ethical and effective. Borrowers get loans, incentives and sound financial advice to ease them out of the debt spiral. Lenders get a far better interest rate than a bank could offer, and can invest in a worthwhile cause at the same time. It all adds up.
The man behind QuidCycle is Frank Mukahanana, an investment banking professional turned financial adviser. While working for a big institution to help families manage their money, he became ever-more frustrated by the standard financial products at his disposal, and decided to develop a new and better way himself.
QuidCycle is straightforward, friendly and jargon-free. It connects borrowers and lenders directly, cutting out the banks and financial institutions, so that more realistic interest rates can be set for both parties. "Peer-to-peer lending is a bit like crowd sourcing. It has been around for nearly ten years, and is a very safe, secure way of sourcing money. People who have a little extra cash in savings accounts invest a small portion of that money by lending to people who need it, and get 4%-6% interest back," says Mukahanana.
The service puts people before profits, borrowers not only get access to reasonably priced loans, but are offered support, encouragement and education along the road to becoming debt free. They get regular reviews from a financial adviser, bonus incentives to meet repayment targets, and online financial training.
The ultimate aim of QuidCycle is to turn borrowers into lenders, so that they can one day help people facing the same difficulties. Mukahanana comments: "A lot of families, through no fault of their own, have more debt than they ever planned to have. We intend to turn this around so that instead of paying interest, before long they will be earning interest."
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