Your loan is financed by investors who rather invest their money in private individuals than some expensive financial product where it is the bank that makes the big profit. Normally, they also like the concept of collaborative consumption. Crowdlending is right down there.
Who will finance my loan?
How does the application process work?
After just a few clicks, you will receive a non-binding offer for your loan request. LEND then reviews your specific situation and adjusts the credit amount or interest rate based accordingly. In order to do this we require the following information and/or documents.
For personal loans:
Your personal details
A copy of your passport, your ID or your foreign national identification card ("Ausländerausweis")
Salary statements for the last three months
A copy of your status in the Debt Enforcement register ("Betreibungsregisterauszug")
Your personal credit report from ZEK (Central Office for Credit Information)
For SME loans:
Commercial registration of the company and copy of the owner's passport, ID or foreign national identification card ("Ausländerausweis")
Financial statements of at least two years and most recent AHV and VAT bills
A copy of the company's Debt Enforcement register, not older than one month
Once we have verified all your documents, we will publish your loan project on our website for funding by our investors. You will also receive a loan contract that you should sign and return together with a certified copy of your passport/ID/foreign national card ("Ausländerausweis") to us. We will then pay out your loan to your bank account. If you have a running loan at another bank, we will pay directly to that bank and transfer the remaining amount to you.
What are the different risk categories and how is my interest rate determined?
LEND assigns an individual credit score to every borrower, based on information provided by the borrower, combined with third-party information ("Scoring"). The score reflects the probability that the borrower will pay back the loan in full. LEND uses this score to divide borrowers for both consumer and SME loans into risk categories A, B, C, D or E. Each risk category represents a range of interest rates within which the borrower may apply for a loan on the LEND platform. Within this interest rate range, LEND will assign a concrete interest rate, based on factors like the loan period and the amount of the loan.
In addition to the traditional risk classification methodology, we also factor in a few more modern and innovative methods to assess risk. On top, LEND borrower can take out insurance, covering risks against death, disability or unemployment.
What information is shared with third parties?
LEND exchanges information with all offices and information providers required for a thorough risk underwriting. Typically, this involves the Central Office for Credit Information (ZEK/IKO), credit reporting agencies and debt collection agencies.
How does LEND deal with attempted fraud?
LEND will prosecute any attempted fraud and press criminal charges in any event. All documents required by LEND can and will be verified.