New Online loan service launched by Borro
29/08/08
This week the first online service offering customers a short term loan was launched by BORRO (borro.com). The service will be provided through the temporary release of equity from personal assets. This service is to help people who have fully utilised their normal solution to money, credit cards, personal loans etc.
There are no credit checks or risks, the customer has 6 months to pay back the loan and then their valuables will be returned. This is a lower cost solution then an overdraft or payday loan. You can borrow up to 40% of the value of the items pledged and interest is charged at 6 percent per month and 4 percent for loans of £1,000 or more. You can borrow anything between £100 and £100,000.
The advantage of this system is the customer can not get into further debt. If after 6 months the item is not repaid and they choose not to extend their term, BORRO will sell their item and give the surplus back to the customer.
Founder and CEO of BORRO, Paul Aitken, said, "We allow people to lend themselves money through the temporary release of equity from their personal assets - all from the comfort and convenience of their own home. Our approach allows us to keep our interest rates extremely competitive, ensuring that we offer radically better value than an unplanned overdraft or a payday loan.
The added benefit of our service is that our customers have no risk of accumulating bad debts. If they can't or choose not to repay their loan, BORRO sells the items they have pledged to repay the loan and returns any excess proceeds to the customer. This means that the consequences of not paying off a loan are very clear - and that it is impossible for our customers to build up any bad debt through taking out a BORRO loan. We are proud of this innovative and radically better-value solution that we have created for people with a short term cash need"
During its pre-launch BORRO has received positive feedback from its customers and the service is working very well. A wide range of valuables have been used to secure the loans ranging from first edition books to Second World War medals.
