“The unsecured loans market has experienced continuing growth over the last five years due to strong consumer confidence and record-low interest rates. However, looking ahead concern over rising levels of household debt has resulted in government intervention which may slow growth in this market.”
– Sam Marks, Financial Services Analyst, Mintel
Lendo, in its role as a fintech startup is opening up the personal loans market by expanding it to include cryptocurrency that is offered as collateral for a loan. Although Sam Marks from Mintel is fairly upbeat in the 2018 Mintel market report on unsecured loans, there is some cause for concern among borrowers, as conventional lenders in the UK are becoming more cautious due to concerns about rising levels of personal debt.
According to the Bank of England, “Banks and building societies reined in their lending to consumers during the first three months of 2018 at the fastest rate since the credit crunch.” Its data reveals that the availability of loans to consumers slumped in the period January to March and the survey by the BoE showed that consumer lending tightened by an aggregate of 38.7%.
The dramatic drop-off in approvals by lenders is partly responsible, with successful credit card applications down 26.2% and other forms of unsecured lending falling 13.2%. Analysts at HSBC said: “Today’s survey shows that credit conditions are tightening in the UK, at least for the consumer.
Lendo helps consumers to get loans and credit
Lendo offers an alternative solution to UK borrowers who are being turned down by the banks. And it is one where loans are approved at speed, hours rather than days, and there are no credit checks needed thanks to blockchain technology and smart contracts, plus the cryptocurrency provided as collateral against the loan.
But, you might ask, how can a person access these fast loans if they don’t own Bitcoin or Ethereum, currently two of the popular cryptocurrencies accepted as collateral by Lendo?
There is a simple answer to this: buy Lendo’s ELT token.
You can think of it as a savings plan for a future loan, and Lendo also plans to create a savings account at a future stage of the platform’s development. But, in the meantime, the ELT you buy today is just as acceptable as collateral for a loan through Lendo and its network of registered lenders as BTC or ETH. And Lendo will offer you a debit/credit card as well when you’re a member of its community.
Read more about how Lendo can help your personal finances at lendo.io