Based near Manchester, eMoneyUnion is a Peer to Peer Lending Platform that Serves Non Standard Borrowers in the United Kingdom. CEO Lee Birkett recently sat down for an interview on Crowdfunding Podcast.
eMoneyUnion presents pre-approved borrowers to lenders acting as a peer to peer loan matchmaking underwriting service. Loans may be requested from £1000 up to £10,000 – for any purpose.
The total high cost credit market is currently estimated to be worth £8 billion a year and a large percentage of the UK’s most financially vulnerable are trapped with unaffordable and often short term loans. Creating a new environment where borrowers have access to longer term loans, at a fairer interest rate, can aid their financial and mental well-being. One of eMoneyUnion’s key objectives is to get people out of an expensive debt spiral and into a fairer loan agreement. This consolidation process, in the majority of instances, improves the credit rating for people and opens up even cheaper access to credit further down the line.
To encourage individual lenders to provide a loan to someone with a less than perfect credit history, we needed to come up with additional incentives i.e. a higher rate of return for the lenders was a big driver, but the critical element was providing as much security of loan repayment as possible. After consultation with prospective individual lenders, eMoneyUnion came up with the Bank of mum and Dad concept, insisting that borrowers obtain a Personal Guarantor to support them in their loan application.
eMoneyUnion does not only rely on credit checks and will consider proposing all applicants for a loan, providing they can prove they can afford to repay the loan back.
There are an estimated 50,000 active social lenders in the UK, all wanting a better return on their money and happy to be part of a sharing economy. The majority of lenders will spread their risk over various Peer to Peer platforms. The largest platforms by monies lent are No. 1 Zopa, No. 2 Funding Circle and No. 3 Ratesetter.
The three largest platforms are members of a recently formed trade association, The Peer 2 Peer Finance Association.