How Does RainFin work?Mar 8, 2016 Blog RainFin , SME
On paper RainFin may seem too good to be true…However, as our many happy customers would attest, what you see really is what you get…
I successfully applied for a loan this week and it was auctioned and paid out on the same day. The process is highly efficient, extremely user friendly and directly addressed my needs. I cannot thank you enough for the excellent service, well thought-out process as well as the helpful and friendly staff assisting me. Thanks to helpful and friendly Karen and her colleagues for making the process smooth and fast. Also thanks for sourcing such excellent peers to lend from!
To give you the full scoop we have created an infographic that talks you through each stage of joining the RainFin Community and applying for your first loan on our credit marketplace.
Ok, tell me more?
RainFin does not provide loans. That’s the first thing to make clear. We are not a bank or a loan provider. We are a credit marketplace. That means that we facilitate loans between trustworthy lenders (who are looking for a solid return on their investment) and trustworthy borrowers who are looking for access to finance.
When you apply for a loan on the RainFin marketplace we review a number of factors to assess your creditworthiness – this is done via a unique scorecard that takes into account more than just your credit history. We look at your overall financial health and potential. From this scorecard we assign your loan a risk grading. Lenders will use this as a guide for the interest rates they are willing to offer you.
Once your loan application is up on the marketplace, lenders can offer to fund all or part of your loan at an interest rate that they set. If your loan is fully funded, your interest rate will be an aggregation of the rates offered.
RainFin loans are amortised, so you make a fixed monthly repayment. This means that (if you’ve kept up with your repayments) once your loan term is finished you will have repaid your entire loan amount and all of the interest charged. That means no lump sum repayments at the end of your loan term. And – if you choose to repay your loan early – no early repayment fee.
What’s in it for RainFin?
So, RainFin enables borrowers to access fair, fast and affordable finance without profiting from interest. And it gives lenders the opportunity to make a good return on investment without the huge overheads of hiring an accountant.
What’s in it for RainFin? RainFin charges a small monthly fee to lenders and borrowers. This allows us to run the marketplace, underwrite loans and ensure that we always protect the security of our community.