The modern way to grant loans.
All about Peer-to-Peer Lending – for borrowers and investors.
You want to know what Crowdlending is, its benefits for borrowers and investors and how this modern way of financing works? Learn all about Crowdlending here!
What is Crowdlending and how does it work?
Crowdlending (often also called Peer-to-Peer Lending or just P2P Lending) refers to the granting of loans via the internet through the crowd. On Crowdlending platforms such as LEND, borrowers can apply for a loan and investors can directly finance such loan projects. LEND acts as a marketplace and processes the documentation and all payments between the parties.
How do Crowdlending platforms and banks differ?
|Lending||Grant loans without using their own capital||Grant loans financed with own capital and customers' savings deposits|
|Financing||Earn money exclusively with low fees||Earn money through fees and interests|
|Projects||Enable investors to invest in projects of their choice||Do not allow investors to directly influence the use of their deposits|
|System||Operate online and with highly efficient and automated processes||Work traditionally and as a result cost-intensive|
Crowdlending: Advantages for borrowers
Benefit now from the advantages of bank-independent borrowing
You benefit from an easy loan application fully online – without time-consuming visits to a bank branch.
Using state-of-the-art IT processes, we review your loan application and can thus decide swiftly on your loan application.
Crowdlending platforms often offer better conditions than traditional institutions. With LEND you can get loans from 3.5% annual interest.
On P2P platforms, you enjoy the advantages of less bureaucracy and simple, fast processes.
Crowdlending: Advantages for investors
Benefit from the attractive investment in Crowdlending loans
Crowdlending loans are straighforward investment products. You invest directly in loans and decide where you put your money to work.
Thanks to lean structures and without a bank acting as an intermediary, we save costs – and pass these savings on as additional return.
Investment with small amounts
You can invest in small portions of a loan which allows you to build a diversified portfolio even with small amounts.
Control over investments
You put together your tailor-made portfolio and choose the mix of term, interest rate and risk. With this you can target specific returns.
Step-by-step instructions for your Crowdlending loan
The path to a Crowdlending loan explained
1. Application & Review
Using Crowdlending via LEND, borrowers apply for their desired loan amount and term free of charge and with no strings attached. Applicants can also submit all required documents online.
On the basis of this information, we perform our loan assessment and assign a score to each loan project. All approved loan projects are published on our platform for financing.
From the moment the project is published online, investors have the opportunity to invest in it. If sufficient investors finance the loan successfully, the loan agreement is concluded. Our dashboard keeps applicants and investors informed of the current financing status at all times.
The loan agreement is concluded with LEND. This avoids a direct contractual relationship between the borrower and investor, which reduces the legal burden for both parties and provides greater protection of their privacy.
Once the loan agreement is signed, LEND pays out the P2P loan deducting a small fee from the loan amount.
The loan amount plus interest is repaid with predetermined periods and payments. This process is also managed entirely by LEND. In the event of default or inability to pay, we intervene immediately and take the necessary steps.
The loan amount can also be repaid prematurely at any time.
Crowdlending in Switzerland - a future market
"Confidence in this new way of borrowing is growing more and more!"
Every year, even more loan projects are financed via crowdlending. In 2021, loans worth over CHF 600 million were financed with the help of crowdlending marketplaces instead of banks. As a Swiss FinTech company and market leader in personal loan crowdlending, we have convinced thousands of people of the benefits of crowdlending in recent years.
The crowdlending market in Switzerland comprises three different types. While Consumer Crowdlending focuses on granting personal loans, Business Crowdlending encompasses business loans. Mortgages are granted as part of Real Estate Crowdlending.
More exciting facts about the Swiss crowdlending market can be found in our blog (German only) and in the "Crowdfunding Monitor 2022" by the Institute of Financial Services Zug IFZ at the Lucerne University of Applied Sciences and Arts.