QuidCycle to Revolutionize Debt Management Ethically sound peer-to-peer lender to challenge payday loans companies

QuidCycle to Revolutionize Debt Management Ethically sound peer-to-peer lender to challenge payday loans companies

QuidCycle to Revolutionize Debt Management
Ethically sound peer-to-peer lender to challenge payday loans companies

By AltFinanceNews on 28th November 2013An ethical peer-to-peer lending company – QuidCycle – is giving hope to families trapped in spiralling debt.
Growing frustration at profit-driven financial products and institutions led founder Frank Mukahanana to create QuidCycle. Mukahanana believes the customer-focused model will ultimately render payday loans companies obsolete.

Mukahanana said: “It should not, and cannot be acceptable in any society that financial institutions, of which there are many old and new, continue to offer people more ways to get into even more debt, but don’t offer them a credible solution for getting out of debt. Financial institutions need to provide their borrowers support and education to become debt free”.

QuidCycle believe they have the answer. The service aims to ease responsible borrowers out of debt by refinancing that debt at a lower interest rate. The platform will give borrowers access to online financial training, as well as annual access to a financial adviser. QuidCycle will also offer financial incentives to borrowers who stay on track with their repayments, and who take advantage of the educational facilities at their disposal. If these criteria are met, borrowers’ interest rates will continue to fall.

The platform also appeals to lenders, offering both a secure and ethical method of saving. Lenders can expect an EAR of 5.50% across all loans including fees – better than the rates offered by banks.

QuidCycle hope that, in time, their borrowers can become lenders and start to accumulate savings of their own. The model has a powerful symmetry to it – who better to empathise with those in debt than those who have been so recently freed of it? In guiding borrowers out of debt and into lending, QuidCycle may deal with some users for a decade. Those users will doubtless glean confidence from the fact that QuidCycle’s fees are extracted gradually throughout the lifetime of a loan, rather than all at once.

The company have set an initial fundraising target of £150 million in Britain, which would change the lives of 9000 responsible people, and the landscape of debt management.

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