User:Mala chauhan

YES-secure
 YES-secure is an online peer-to-peer lending and borrowing marketplace which entered the UK unsecured consumer loan space in June 2010 and handles financial transacting activities for its registered members. Its eBay like business model enables registered individual borrowers to place loan requests which are then bid upon by the lenders, with the lowest-rated bids finally combined into a fixed rate loan. A unique feature incorporated into the YES-secure business model is the social networking aspect which allows the users to utilise their community contacts in the financial transactions taking place on the platform. 

YES-secure Loan Process
 People can register online with YES-secure.com after identity verification. If the applicant applies for a loan, YES-secure slots the credit application into one of its six markets (A*, A, B, C, D, E) based on the credit score of the applicant which it sources from Callcredit. The assigned market can influence the interest rates the borrower is likely to be offered for any prospective loans. In addition to borrowers’ credit scores, lenders can consider various factors such as affordability, stability and Reliability Score TM among others to decide on a suitable interest rate. YES-secure accept loan requests from all credit grades.  A prospective borrower can put up a loan request indicating the loan amount and term with a detailed description of the purpose of loan. Once the loan listing is posted, lenders can start bidding on it at the interest rate they would like to offer. The members can borrow or lend up to £25,000 for a loan term of 12, 24, 36, 48 or 60 months on a fixed interest rate mutually decided between them. YES-secure diversify the risk to lenders by funding each loan through a large number of lenders and limiting each lending bid to five per cent of the total loan amount. Lenders can choose to lend to borrowers with different credit grades and market. YES-secure charge £80 as a one-time arrangement fee to the borrowers on a loan and 0.9% fee to the lenders which is monthly deducted from the lender’s account. There is no penalty for partial or complete early repayment.  If a borrower defaults, the loan is handed over to the debt collections agency and the lenders are paid a part of the recovered amount. 

YES-secure Secondary Market
 YES-secure maintain an active secondary market for the loans to provide enhanced liquidity and investment alternatives to the investors. Lenders can sell their loan slices at a discount or premium to generate quick funds while other lenders can buy these to create an instant diversified portfolio by choosing loans from different markets, rates and terms. The lenders who buy loans in the secondary market have the privilege to view the repayment history of those loans in order to make an informed decision. 

YES-secure Community
 The social networking aspect of YES-secure expects users to invite their friends, colleagues and family to bid on their loan listings as well as form part of their community groups. The members are encouraged to form connections and groups on the platform so that the lending and borrowing can take place in an increasingly familiar, though credit-checked, community. The idea seems to be to translate community networking and loyalty into supplying low cost loans as well as lower default rates.  YES-secure deposit the lenders’ money in an undesignated client account with the Bank of Scotland. It has received credit licenses from the Office of Fair Trading (Registration Number 631278), and registered with the Office of the Information Commissioner (Registration Number Z1960081). 

Reference Links

 * 1) “P2P lenders to take a bite out of banks” (page no.9-10) (ISSUE: 2010/09), Lafferty Retail Banking insider, http://www.lafferty.com/?dept=007&section=035&issueID=88
 * 2) http://www.yes-secure.com
 * 3) http://www.thisismoney.co.uk/credit-and-loans/loans/article.html?in_article_id=504889&in_page_id=53937
 * 4) http://www.promotionalcodes.org.uk/14376/zopa-vs-yes-secure-p2p-lending-in-the-uk/
 * 5) http://www.which.co.uk/money/credit-cards-and-loans/reviews-ns/peer-to-peer-lending-websites/