P2P platform launch interest free one-day loan
Welendus, a new fully FCA approved peer-to-peer short-term credit provider, launches the first ever one-day, interest free loan.
For individuals or households which need a loan of up to £500 and can pay it back later that day, the company is offering this facility free of charge. This features alongside highly flexible, fair and reasonable repayment schemes, and is aimed at those faced with unexpected or emergency bills.
One quarter of UK households would be unable to source the funds to pay an emergency bill costing £100 or more. This issue that has previously been solved by payday loans with unaffordable rates and for-profit penalising structures for late repayments, and the very expensive unarranged over draft facilities offered by banks. Welendus, in contrast, offers ethical loans with no late repayment penalties.
The community-sourced loans create a fairer source of short-term credit, and the platform is already serving over 350 people in need of some extra cash. Hundreds of investors have already benefitted from the flexible investment platform offering an annual return of up to 15 percent. They also have the added benefit of seeing how their investment is helping borrowers in the Welendus community.
Unlike most short-term loan providers, Welendus is committed to helping rather than exploiting those in difficult financial situations. When a borrower is unable to repay a loan, rather than accruing penalties, large fees and marks against an individual’s credit score, the loan transitions into a long-term loan with affordable interest rates.
While this simple solution isn’t rocket science, it took founder, and former space engineer Nadeem Siam to solve the problem. Siam said, “The problem seemed clear to me: people are penalised for taking out short term loans often when they are not responsible for the cause of their financial difficulties, for example if their boiler breaks. Welendus solves this, alongside giving local investors the opportunity to invest in their communities and gain value added returns that are unique to the peer to peer lending industry.
“A huge percentage of the UK population don’t have savings and we aim to provide a simple and ethical resource for emergency cash,” Siam said.