LendingBorrowing Groups My Account
 

The GFC and Consumer Lending in Australia

Posted By LendingHub on April 5, 2009 No Comments » Filed under: Banking Industry, Economics and Interest Rates

There’s been a great deal of pessimism about the GFC (Global Financial Crisis), the economy, job prospects, the share markets in Australia (and the World) lately. Consumers are finding that the banks have started to tighten access to consumer loans and restrict lending all but their prime clients. In a country with four large banks Government decisions have helped these banks to snap up smaller rivals and effectively have lessened competition at a time when consumer need more competition rather than less.

Now, not only does it take longer to get a home loan or personal loan from one of the major banks but the LVRs (loan to value ratios) they offer are lower and potential borrowers with any blemish on their credit history are effectively being locked out of the loan market, even if it something small such as not paying a phone bill.

We at Lending Hub have been developing our person to person lending platform to allow Australian consumers who are either finding it hard to get a loan from the banks or just want a better deal. Lending Hub will let consumers and borrowers tap into the power of their network of friends and family and borrow small personal loans from people thye know.

Similar to other circle lending networks individuals looking to fund personal expenses can apply for a loan listing on Lending Hub and then market their loan to their friends and family.

Friends and family (and even work mates) are more likely to lend to someone they know and trust and the reward is that borrowers are more likely to repay on time.

The GFC may have caused a credit squeeze in the short term in Australia but soon to be going live Lending Hub will offer borrowers another avenue for their loan needs.

See us live in April 2009!

Related Post

Comments are closed.