Online loans. How to borrow money on the Internet

“Marinochka, please lend me 100 rubles till I get paid! A saw a handbag and it’d be a sin not to buy it!” How many times have we referred to such Marinochkas, Vasenkas, Petenkas when we needed money for some reason ... to go to the bank just because of the 100 rubles seems to make no sense, but to the friends’ and fellows’ is just the right thing to do! Although often there are cases, where even for large amounts of money we do not go into huge buildings with protection and impolite cashiers, but to the same Marinochkas, Vasenkas, and Petenkas. When asked why not go to the bank, we often get the answer: "There is a bureaucracy and running with the papers all over!" Powerful argument, given that our people live with the principle of “time is money”. However, not only the people have moved to the rhythm of life which goes by gallopping, but financial institutions as well.

More recently, our country has come the notion of online lending, which in one way or another was to improve the lives of Russians, to present a bit of American culture. So what is online lending, and in what form did it come to Russia?

Online lending is still the same crediting, but through an electronic network. Lending is mainly conducted through an electronic exchange or transfer of funds to the bank account of the borrower. And, of course, as with any offline credit fund, you will have to pay a certain percentage in accordance with the terms of credit and loan.

Now, turning to Internet search, we see more than convincing evidence that the banks and the progress do not stand still. Upon request “online credit” on Yandex, we immediately get a response “23 million pages have been found.”

Among the links one can find proposals of various banks that offer to apply for credit directly through the Internet. The mechanism is simple, you fill the application online then it goes to the bank, where it is carefully considered by the bank's analysts and consultants, who decide to give or not to give credit to you. But unfortunately, here is where the wonders of progress end, as in the case of consent to the credit you have to go to the bank with a bunch of documents that are necessary for processing the loan. Later, you will have to go to the bank after the money too. This is already good and, of course, we are still far behind the West. Customers seem to be more trust worthy behind the till, so that they don’t have personal contacts, and communicating only through messengers is enough. Although this is also explainable: The widely-developed banking computer network allows one to find all the information and documents about clients.

However, as we have said, speaking about online lending, most of the time, the projects in mind are those located directly on the network. Today there is a great amount of forums in RuNet where people can lend or borrow on their own. However, the amount as well as the timing of interest varies very widely. Here you can find the application for 10 dollars, as well as for a few thousand. Basically, in such forums, people are taking the amount from 50 to 200 dollars, while smaller amounts are a common practice too.

But those who believe that there is nothing either than getting money on such a forum are deeply mistaken. Forums are also places where people make money. And these people are very respectable men, who don’t give credit to all.

Before giving you credit, even in the amount of $50 you will be carefully “scanned”, as no one wants to lose money, whether it is $5 or $ 1000. Usually before giving someone a credit such factors as the availability of a positive credit history, business activity, the presence of the early returns, and of course, the bail, left by the borrower are looked at. In the cases, when the loan is issued in title signs of WebMoney online payments, the certificate user is also looked at.

The deposit to be left, usually, depends on the amount of credit. Usually ICQ numbers, various web sites, and even accounts on different games and a variety of projects can be given as a bail.

In addition to the forums there are entire companies doing business in the network and replacing the same Marinochkas and Vasenkas. One of the main services of this kind is the WebMoney credit exchange market and the WebMoney debt service.

The name of the WebMoney credit exchange market speaks for itself. Credit there is not given by the WebMoney system itself but by the same stout gentlemen who have money and want to earn on it. WebMoney only provides a platform for lenders and their clients, as well as all financial transactions. The system does not charge any service commissions and takes only usual commissions charged for the transfer of funds.

Getting credit at the WebMoney exchange market is not so difficult. You need to start a new «C» wallet, and form an application form, and ... wait. Wait until creditors get interested. Moreover, it is necessary to note, the more information is provided in the application, the higher the chance to get a loan. The advantage of the WebMoney credit markets to the forums is that in the event when the amount is not returned to the creditor system automatically locks the debtor’s account, eliminating the option of withdrawing the funds and returns unpaid amount to the creditor from the wallet of the slack borrower. In the event when there are insufficient funds in the wallet, the company automatically forwards all incoming payments to this wallet and repays the debt.

Credit history of the credit market participants is open to all, which allows to independently determining the degree of trust to the borrower.

With regard to the debt service, WebMoney is a little different system of crediting. Here the whole scheme is built on credit of confidence, opened by each creditor, as well as on the Paymer system, which is a guarantee of a refund.

Credit of confidence is opened for a certain correspondent of WebMoney. For example, in order to open a credit of confidence the creditor has to select the correspondent from his own list, go to the section «About the correspondent», and open a credit of confidence. The credit of confidence, in this case, is a framework within which the lender provides a loan, namely: the maximum amount of credit granted, the terms of the loan and the conditions of repayment of interest and the account from which the loans will be made. All transactions on the credit of this service should be registered in the Paymer system, otherwise they are not considered a loan and the system is not responsible for the return of lost funds, if that happens. In the case of proper registration on the system and non-payment of obligations by the debtor of the borrower Paymer can be used for the recovery of evidence in court.

After opening the credit of confidence correspondent receives an internal e-mail notification. In case if he agrees, the credit of confidence is considered to be officially opened and the credit can safely be borrowed.

It is worth to highlight, an automatic credit service LendMoney, which works exclusively with the WebMoney payment system. The company offers several types of credit, depending on the loan amount. The first plan is a loan of up to 100 WMZ or so-called express loan for up to 10 days. To obtain such a loan it is only required to apply for it on the site. Next, the program will automatically assess the required amount. Interest rate on rapid loan ranges from 0.17% per day.

Even in the case of using a credit for a maximum of 10 days, the payment of interest is a non-critical value. Losses from the absence of the required amount of WMZ in the wallet at the right time can be considerably higher.

You can also get a loan in the amount of 100 WMZ to 1000 WMZ. The scheme here is about the same as in the previous plan, but the accrual of funds takes place only after consideration of the application. The assessment takes place within 24 hours.

Loans in the amount of 1, 000 WMZ to 100, 000 WMZ will be issued only for business development and a business plan must be provided to obtain the amount.

In addition to these services there are still a great many companies that agree to provide you with consumer loans and loans for business development.

While the domestic sphere of online lending is getting around with its own funds and very slowly, it is going straight ahead. However, it is possible that in a short time period, such online lending giants as Prosper may come to the domestic market, causing a smirk at the Zopa Russian human system.

Credit Exchange Prosper is the largest P2P exchange with multimillion investments. Launched in 2006, it quickly became popular and has roots in the country with the most fertile ground for this purpose - the United States. Perhaps the situation will change after a crisis, but people are unlikely to abandon credits completely.

Zopa, an English response to American Prosper, also made a furor in the world market. But it could not conquer the New World, not being able to stand the harsh conditions of the U.S. market. And only after 10 months after launching its service in the States, the company that spent 15 million to enter the U.S. market, has announced its exit.

At the time when there is nothing being said about Prosper in domestic lobbies, the system of Zopa has caused very persistent rumors. It was said that negotiations were being held between the creators of Zopa and domestic giant Odnoklassniki, who claim they have managed to unie more than 30 million users. Perhaps, Zopa hopes to repeat the success of the Lending Club credit company, which was launched as an application to another social network, Facebook.

Perhaps failing in America, British will turn to the Russian market, with more favorable terms. Underdevelopment of the online lending market is also a fertile ground for business development in Russia, and without a doubt, the business model conquered the most developed countries in the world and polished to shine will find its application in what we call Ru-business.

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