It’s been awhile since we last updated you on our development progress and when we expect to launch. Firstly it may be good to put things in perspective and to give you a little overview of what we are trying to achieve…
We are designing Lending Hub to be a truly online platform for matching borrowers and lenders rapidly without any of the hassles of a physical bank. To achieve this requires a high degree of automation and development of our compliance systems, which is where our focus has been for the past 2 months.
Secure Automated Processing
We are aiming to achieve virtually all processing of borrowing and lending applications online in real-time. The Lending Hub system will check and process a borrowing application within less than a minute (assuming you have a traceable credit history and have provided all required information). Now instead of waiting at a bank or searching for your nearest branch we’ll be able to process your details in less time than it takes to grab a coffee!
If we require any physical documents (e.g. payslips or bank account statements) you can upload a scan directly to your Lending Hub account. No need to mail us anything (unless you really want to of course).
Australian legislation is quite explicit in the requirements for consumer loans, if you intend getting a loan (from any lender not just us) then check out The Uniform Consumer Credit Code at http://www.creditcode.gov.au/. This code is designed to protect consumers by clearly defining the terms of a loan and the loan agreement.
To meet our compliance requirements under the UCCC our loans agreements will be available for reading by the anyone prior to entering into an agreement or starting a loan listing on Lending Hub. This level of transparency is relatively unheard of in Australian financial services (after all how many banks do you know that show you the fine print before they process your application?). In addition we’ll clearly stipulate our fees and your obligations under the agreement.
No early repayment fees!
Most lenders in Australian will charge you if you want to repay your loan early…yes, that’s right! if you are a good borrower and have the money to repay early they penalise you with complicated formulas and more fine print.
Lending Hub personal loans will let you repay early the principal and interest you owe at any time (assuming you’re not behind on any repayments of course) without any additional fees or penalties!
At this stage we are trialling p2p loans with a private group of borrowers and lenders and except this will clear the site for launch in either August or September 2008!
We’ll keep you posted in the meantime with some interesting topics.
Lending Hub Team