Loans at the time of Facebook

Perhaps today is the best time to address to friends and relatives with a request for a loan of money for study in college or university. It isn’t necessary to be an economist to see those shocks which occur today in the financial markets of the whole world. They had already led to the fact that bank loans have become the rare and very expensive phenomenon in the United States.

Today many large banks are closing their subdivisions which were engaged in crediting of prospective students. For someone such situation can lead to a complete failure and the person receive education less. All of this as a result can negatively affect his future career.

Probably, now we observe the real origin of a new type of crediting which has been already named in the USA as «social lending» when private individuals credit other people, using possibilities of various intermediaries. It should be expected in the age of Facebook.

The idea of of “social crediting” in connecting people who need the credit with those who is really ready to give it. In this case, all the paper work on themselves is taken by intermediary sites , so that people will not have to go into all these details. In addition, the "social loans" in comparison with traditional differ lower interest rate that is favorable to students. In turn, creditors can choose people who should granting a loan. Maybe to a future musician or fan of programming?

While such a crediting of students is rather a new type of business, so it is difficult to define what number of students really obtain the similar credits. Nevertheless, such an approach is already used by some companies for plain men.

Who credits students?

Today Fynanz.com is one of the most known services of national crediting which organized a real network for receiving national credits. Each user has a detailed questionnaire which indicates why he needed the money at all (for example, want to go to medical school to fulfill a dream and become a physician.)

Creditors can pick up to themselves the person for his questionnaire, for purposes which he puts before himself. And it isn't necessary to pay all sum to the person alone. There is also an opportunity at which it is possible to give out the small credits about 50 dollars. Though here risks increase even more as the person can not gather as a result of the necessary sum. And then your money will be returned back.

Students on similar services is not only youth. There are quite adults over 40 who decided to change profession, but have no sufficient means to pay for education immediately. As a whole, the average interest rate is 8-9 percent.

Another popular service of "social crediting" - GreenNote-works on the fixed interest rate which is 6,8%. The credits are given with a maturity date in 10 years. The main difference from other similar services in GreenNote is that funds are transferred through a site not to the person, but directly to college or university in which he arrives.

Naturally, risks for the creditor in a similar type of financing of students are rather great. It is necessary to estimate reliability of this or that man personally. In most cases it is young people who yet have no sufficient credit history that it was possible to estimate their reliability. In this case progress in studies of person at school is very representative. Most companies don't open the financial performance measures and information on quantity of the given-out student's credits.

Now representatives of universities believe that the easiest way to obtain credit is to ask less. It isn't necessary to ask for sum for all course at once. It is better to ask only 4 thousand dollars, but to specify on what they will go. The probability of receiving such money is much higher.

So, evidently the national crediting represents rather exotic financial service. It will be interesting to look at developing of these models of receiving money in the future. At least, there are opportunities (technical) for development. Considering the current situation in the financial markets, there are preconditions for successful work of such services.

Date: 2016-01-05; view: 902