South Africa is ripe for Peer to Peer lending

By Sean Emery

Peer-to-Peer (P2P) lending – where online platforms facilitate consumers lending money to and borrowing from each other – is on the rise across the world. The reason for this is simple: people want to wrestle control of their financial lives back from the banks and enjoy better interest rates whether they are saving or borrowing money.

The numbers coming in from Asia, North America and Europe are staggering. In the US, the Lending Club and Prosper platforms facilitate loans worth $100m per month, while UK based P2P sites are this year expected to facilitate in the region of £200m of loans to both individuals and small businesses.

In China, where offline social lending practices are similar to South African stokvels, P2P platforms are taking off as lending among family and acquaintances moves online. There is every reason to believe that P2P lending will gain traction in South Africa as quickly and dramatically.

P2P platforms effectively cut banks out of financing by linking people looking for returns on cash deposits with people looking to borrow money, be it personal loans, car loans, SME financing or mortgages.

South Africa, controlled by a banking oligopoly, is ripe for just such a radical business model to bring more competition to the market.

Around 90% of SME and consumer lending in South Africa is in the hands of six banks. Not only do these banks offer ungenerous interest rates to lenders and borrowers alike while levying high fees and tariffs, they are also conservative about who they lend money to.

P2P lending has a strong role to play where banks fear to tread. The situation isn’t unique to South Africa – in the UK, government has tried to boost anaemic credit supply by allowing P2P platforms to qualify for up to £100m of government investment.

Perhaps our government will even emulate the UK by supporting P2P credit to the SME sector, the newly banked, and low income earners trying to get mortgages for properties costing R500,000.

Other niches where P2P financing can step in are invoice financing and mortgages to people older than 55 and to self-employed individuals. These borrowers as well as mainstream borrowers with good credit records may find they can get P2P loans quicker and cheaper than they could through traditional lenders.

There is a clear need for credit, so the customers for P2P platforms are there. Many of these borrowers are already comfortable with peer financing in the form of stokvels, so in a sense we are simply supplying them an online version of a practice they are comfortable with.

The lenders will be there, too, since many people are looking for higher returns on their capital. P2P loans enable savers to earn higher interest rates by lending their money to other people rather than hoarding it in a bank account.

We believe that people can make in the worst case scenario a return of 8% or more if they diversify their P2P loan portfolios – attractive compared to the 2.5% or 3% banks are offering on money market accounts. That’s a compelling proposition in today’s financial climate.

With South African banks facing so many challenges – regulators pushing them for more transparent charges and tougher requirements on capital as a start – the time for the P2P lending model is at hand. We believe that there is a sustainable business to be built in this sector simply because borrowers and lenders are both looking for alternatives to traditional finance.

P2P lending in South Africa is just starting its upwards trajectory. It’s probably one of the most exciting developments in the financial services industry for years.

Sean Emery is the CEO and a co-founder of RainFin

  • Hey there I would like to lend an amount of R30.000 to clear off all my debit and start a new debit free life as am not able to pay all my accounts at the moment plus am struggling fanancially.If somone would be able to help me out please my number is if anyone can help me out with 48 hours

  • Hi There i am in need of a loan of R60 000.
    I am willing to pay back R2500 a month, i need to settle all debts and make a clean start, can someone please help, bad credit.

    1. Hello
      Is anyone helped you with the money yet. Please reply I want to know if is working.

    2. Hello
      I need R150 000 to pay all my debt and have one installment. I will pay R3500 pm and I`m permanently employed. Please,please help.

      1. Hi i am in desperate need R60000 to free of my debt please could someone assist. I am willing to pay 2000 per month. Thank you.

  • hi there i am in need of a loan of 150000.
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    please help

  • Nelisiwe Shabalala

    Hi there I need R60 000 urgently. I can pay R10 000 for 9 months. Thank you

  • Nelisiwe Shabalala

    My number is XXXXX

  • Nelisiwe Shabalala

    Sorru my number is xxxxx

  • Good day

    I desperately need R50 000 to pay of my debt and get back on my feet again after maternity leave. I will pay R2 000 a month back. If anyone can help me I will be eternally greatful.

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    1. Hi is there any one out there who can help me an my kids with R80.000 pls so I can have a debt freedom life and my kids would then have a proper mealto eat i will pay R1500 per month back pls if there’s any one out there please let me know thank you an God bless

  • Hi

    Did anyone get any help. I’m in need of a loan. Permanent job in government. Few bad mistakes and just need money to fix it. Please some1 help

  • Does this really work. Can a person give their money to strangers. I really think this benefits the rich only and their associates.

  • Does this really work. Can a person give their money to strangers? I really think this benefits the rich only and their associates.

  • I would like to borrow a sum of R20 000. I want to start a business on currency trading. I am willing to repay an amount of 2000 monthly.

  • I need money to pay all my debt.Can you lend me R150.000.I will pay R3500 per month thanks

  • start up company with a fair client base currently. I need R50.000, and i will pay within 6 months. When interested respond @ persidenshades@gmail.com.

    Thanx is advance

  • Hugh Patrick Daverin

    Hi, is there anyone that can help me out with R60 000. I am willing to pay R2000 a month over 36 months please let me know!

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    1. Hi did anyone ever get help?

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    Thanks in advance

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  • Hi,

    I need to loan R 40 000 to clear all debt, will be able to pay back R2000pm.

  • Hi I need someone to lend me an amount of R30000.00RAND.Wecan even draw up a contract.I need to pay off all my debt,cause im really struggling as a single woman.All I need is someone to please help me I will be really greatful for the brake. You can email me any time of day as I am really desperate.
    THANKS.

  • Hi i urgently need a loan of R20000 I can repay monthly at R1200, please it is very urgent. Thank you

  • Good day

    My name is Desmond, i stay in Secunda South Africa. I am in need of R30 000.00 to pay off all my dept and make one easy instalment. can afford R2000.00 a month to pay back .

    Regards

    Desmond
    desmondsmit448@gmail.com
    +27743319498

  • Hello everyone

    im looking for someone who can borrow me R50000 or half of the amount. I need to pay off my debts and be left with one debt.

    Your help will be much apreciated! Thank you

  • Hi im looking for someone who can lend me R500 please ,i need it in 2 or 3 hours time. I tried to get a loan but i cant ,can someone help me plz

  • my name is Cynthia i am 23 years old from South Africa.

    Im looking for financial help, in the last 2 years i was having a habit of reckless lending. To be honest with you i have no excuse of why was that happening, but what i was telling myself is that i am working so i will be able to handle my debts.

    So yes i was working and i was earning enough to be able to manange my debts, R4500 was enough to manange. Unfortunately i lost my job in 2012 January and i spent the whole year searching for one. So for the whole year i could’nt pay becouse i was jobless and my debts interest went high.

    As i dont have a family so there was no one to help me pay.

    After a year 2013 i found a job but its not paying a good salary for me to be able to manange my debts. Im earning R2100 a month. Im trying my best to keep up with them but they are becoming to much for a salary im earning.

    So im trying to apply for a consolidation loan inoder to pay off my debts but i can’t be granted a loan as my credit score is low and im not earning much. I’ve several times with different lenders but they decline.

    So im scared that this will end bad for me, so im pleading with you to lend me the amount of R80 000 so that i can pay them off and i can afford to pay you back by a monthly instalment of R1000 every month.

    Your help will be much apreciated and i hope you will be able to help!

    I know this is not the kind of business you will like to invest in but you will be saving me from the mess im in. And i learned it a hard way, i can promise you and myself that i nolonger wanna see myself in this situation again.

    Thank you so much i would like to hear from you!

    Regards Cynthia

    Cynthia Dinah cynthiadinah2@gmai…

    M

  • Can anyone please borrow me R200k I will give it back with interest of R250k over 6 months please my cell no

  • Hi i’m kindly looking for someone to loan me R200 000 i will be able to give R5000 per month.i need it to start my own business i have this viable business idea the problem is i have bad credit records.my husband is working but he does not quilify for so much money because of his credit score.i will pay who ever who is willing to help me R5000 per month till my business get fit enough to pay my loan off some 1 out there please help my company is already registed i just need a start capital

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  • I am looking for a loan of R30,000.00 to completed the development of my own business, the business is dedicated around the education / communication sector. Please email me for more information Ryan@rrsolution.co.za

  • Goodday

    My MTn shares are Maturing next month 31nov or 1dec thy paying out+- 80.000, I urgently need to borrow 8’000 only from anyone. Willing to assist, i’ll pay it back with interest.

    Regards
    Page

  • Good day
    Could there be a life saver out there to assist me with R55 000, I can repay monthly R2250 a month. I had a few unforseen circumstances all in one month. I want to settle all my debt.
    Please help me urgently
    You can contact me anytime

    Best regards

    Best regards

  • Good day need a loan of R150000.00 to clear all my debts. I am a single mother and need assistance willing to have a contract drawn up to stick to obligation and willing to pay R5000.00 per month until loan is paid up whatever the interest rate may be.

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    i need to pay off a few things so i can start up my business .
    please can someone help me?

  • Good day. May I borrow R25000 please. I need to cover last outstanding fees and can afford to pay R2500 0ver 10 months please. I hope someone reads and reply to this for I yhink everyone who sent an email on this site just need a break. Thank you in advance and God bless.

  • hi im rally in deep debts its abouth 90000 and I really need help I wane go in a peer to peer loan I also wane buy a new car and pay everything back I need about 430000 if its possible please

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    I’m permanently employed looking for a loan of R20 000 can pay back 2000 a month. Please assist if you can.

    Thanks
    KA

  • Good day

    I urgently need R25000. I am permanently employed since 01.01.2014. I can repay R2500 per month. My husband was retrenched, and could not find any job. he is now doing private jobs, but we need money to start this, and I need this to get our lives back on track. Please can anyone help. God bless.

  • Write here…iam in need of help for about R50 000 to pay my debt , I am prepared to sign the agreement for help from N S Blose

  • Hi can anyone lend me R10 000.00 by Friday.I am permanently employed and can pay R2000.00 per month.Please I need assistance urgently.

  • Hi there… Can anyone please be kind enough to lend me R50.000. I need dis money to paid of debts and start off a new life. I am permanently employed and earn a decent salary but unfortunately fell into a financial problems,if someone does help me it wil be of great help to myself and my family. I am willing to pay back every cent to get my life back Thank you

  • Hi, Urgently need a loan of R150 000 to clear my debt and start fresh. Was diagnosed with a sist on the brain and had a light stroke. Was on unpaid leave for so long as had no sick leave but back at work again willing to draw up contract and pay back R2000 per month

  • Hi, can anyone urgently lend me R10000 today. I am a mum of 2 small boys and we’re about to be put on the street by my landlord. Please help us. I have no where else to turn.

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  • I’m looking for someone to ugently lend me 200000 to 250000 need to start afresh by closing all small debt and boost my business.

  • I’m looking for someone to ugently lend me 200000 to 250000 need to start afresh by closing all small debt and boost my business. I have some security I can put forward. Can contact me to discuss.

  • Looking for someone to borrow R60 000 . Urgently needed for flat deposit and removal of storage content willing to pay over 12 / 14 months. Please contact to discuss repayments. cliftton@hotmail.com

  • Hi I am in desperate need of R150000 to free off my debt , please could someone assist. I can then afford R2500 per month repayment. Thank you.

  • I need to horror R150 000 to pay off debts and invest the remeinder.

  • Charmaine de Waal

    Hi i am charmaine a single mother of two.Is there anyone out there who can lend me R100000.00 to pay off my debt that i had to go into after my husband deserted us.I am willing to pay R2500 per month.Please help me by giving me a second chance and hope again.
    Thank You .

  • Hi, is there anyone who can loan me R250 000 with a repayment of R5500 per month?

    I need to payoff debts that I have accumulated over the years.

    Ur kind assistance will be highly appreciated.

  • Hi

    i urgently a loan of R20000. i will repay in 2 instalments. first payment July 01 and second July 15th.

  • I would like to further my education bt dnt hv money for that now I am working bt not earning enough could u plz help m I am looking for about R50 000 for my 5 years studying

  • hi can anyone lend me R5000 I will pay it in 2 weeks I need to pay my lawyer to release my money from my previous company were I wss working please 0836848461 call or whatsapp me

  • Hi! Anyone who can loan me within 24hr wth R60000 repayment of R3000 per month need to settle all the debt as i am a single mother od 2 kids

  • I have been unemployed for 4 months now, and finding a job is tough these days. I don’t have any assets and I don’t have any savings. I’m just doing a bit of catering, selling food in the industrial areas to make ends meet. I’m not making much money from this, as all the money is used to pay rent, buy food and send my 4 year old daughter to creche. I am in need of R30 000 to start my own cellphone accessories business. I chose this type of business because I used to work in the retail industry, selling cellphone accessories, for 4 years. I used to work for a very reputable service provider, to whom I’m grateful for the experience that I gained, and for the eye-opening opportunity to this potentially lucrative business.

    I need R30 000 for the whole project. I will give you the financial breakdown if you need it.

    I would really appreciate your help as I’m willing to pay your money back with interest, if you help me out with a loan.

  • Hi

    can someone pleasee help me with R20 000 i will pay it back as soon as possible

    thanx

  • Good day

    I urgently require R 25,000. I quit my job 3 months ago due to unfairness, stress and before the job has driven me “mad”. My pension will be paid out in 4 months. I am willing to pay R 35,000.00 back once i received my pension.

    This is a desperate move as there is nothing els i can do.

  • Good afternoon

    I need to borrow R550 000 to settle my debts and buy property.

    I will be able to afford an instalment of R5500 per months.

    thanking you in advance

  • Hi,
    Can somebody please help me with R50 000, my life was going well till end of March this year and now it is turned upside down I don’t know how. My kids are kicked out of school,I can’t get my university results I’ve moved back home with my kids, I can’t afford to pay my accounts. I am permanently employed and I will afford to pay back the money on instalments. I need help please somebody

  • Hi,
    Can somebody please help me with R50 000, my life was going well till end of March this year and now it is turned upside down I don’t know how. My kids are kicked out of school,I can’t get my university results I’ve moved back home with my kids, I can’t afford to pay my accounts. I am permanently employed and I will afford to pay back the money on instalments. I need help please somebody.

    Regards
    Ruth Kunene

  • hello, i am request for a loan of R600,000 to be paid in 4 years, my email is woduloenock@gmail.com you can contact me, thank you

  • Hi I’m urgently looking for a loan of 210000 willing to sign up agreement and monthly debit.

  • Hi I’m urgently looking for a loan between 100000 and 210000. We can meet for discussion Thank you

  • Write here…I’m in need of a loan of 2000 to pay of my debts urgently

  • Can anyone help please. Gonna end up on the street. I need R150 000 to get my life on track. My name is Colan. colancox@gmail.com

  • Can anyone please URGENTLY borrow me R25 000 CASH I will pay it back within 48 hours with 15% interest. If you can help please whatsapp me on 061 398 9022 or email leigh.jae99@gmail.com

  • Hi there my name is Michelle I am in desperate need of R30000 to R50000 to sort out rental debt. If any one could help me deseparately within 24 hours it would be greatly appreciated. I am willing to pay monthly or as agreed upon by lender.

    Thank you

  • Can someone help me out with R500 I have t
    o pay someone .. much appreciated

  • kwazi elias mkhize

    Am an individual interested on applying for the loan and would love to know what are your requirements involved ” loan amount R500 000 over 20 years R2500 monthly instalment.
    Any one interested ?am permanently employed

  • Hi

    Interested in a loan of R80000. Can pay back R10000 a month. Will pay back R150000.
    CONTACT ME 0763665115

    1. Hi

      Did anyone every get back to you about a loan?
      One without you having to pay a service fee?

  • I’m looking for a loan of 350 ooo to pay off my debts please contact me on 0818683744

  • Good Day

    I am a very honest individual, full time job and during the years I have stumbled upon some financial difficulties, I would like to start a fresh take on life, no banks will assist me and there appealing for financial help, I would like to borrow between R50,000 and R100,000. Please if there is someone out there who can assist me please reply urgently, I will pay it back in monthly instalments with interest.

  • Good day im looking for someone to borrow me R8000 for my children education im permanently employ at government will be able to pay R1500 every month, my number is 0636510494 to call the whatsapp one is 0795755161. Thank u in advance pls…

  • Good day,

    I need tyo borrow 5000-10000 payable withing 6-12 months

  • IM IN NEED OF R80000 RAND I CAN PAY 1200 BACK MONTLY want to pay my debts

  • Hi everyone I’m need help with a R50000 loan I’m willing to pay R2000 a month, I am not in debt or blacklisted

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