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p>A new lender has launched which intends to fuse the benefits of peer to peer lending and the pawn market.
Unbolted is a new online-only peer-to-peer platform, set up in December 2014, which allows customers to borrow against their high-value personal assets for loans up to £1 million.
The company’s aim is to make pawn a mainstream financing alternative in the UK through value, fairness and transparency to the industry, and by transforming the model with technology.
Potential borrowers can apply simply by uploading photos of their assets, from antique cars to fine art, to Unbolted’s website.
Experts will offer loans within three hours and the borrower could have money in their account within half an hour of the goods being received.
The platform has already received several enquiries from new customers and is now offering rates of between 1.5 per cent and 3 per cent per month for loans taken out against luxury items, compared to typical lenders, who charge between 5 per cent and 10 per cent each month.
Co-founders Rito Haldar and Ashwin Parameswaran met in business school in India and set up the platform with the aim of challenging the way people can access credit by “being transparent, offering fairer terms, cheaper rates and a convenient, easy-to-use online service that puts consumers firmly in control of their borrowing”.
“For us, it’s about making short term borrowing affordable and simple, so we can help asset-rich but cash-poor individuals and business owners,” Rito said. “We want to champion change in this industry.”
Both Rito and Ashwin have a technological background, as well as banking experience.
“Technology drives business, so it’s good that we understand and speak the language,” said Rito.
Ashwin said they had launched the service after Christmas as many people are looking to consolidate their debts and they want to provide a convenient and cost effective solution.
“We see no reason why people should be forced to turn to expensive pawnbrokers or short-term finance lenders to do that,” Ashwin said.
“Using their luxury or personal assets as collateral gives them access to an affordable option through Unbolted.”
Ashwin acknowledges that there is a certain stigma attached to the pawnbroker industry and feels the market is in need of a shake-up.
“We’re aiming to remove this stigma and create a new financing option that benefits more people,” he said.
“We certainly hope people consider us when they come to review their borrowing options this winter.”
“The reality is that in difficult times people sometimes do need extra cash and through Unbolted they now have a smarter, fairer and more sustainable way to do just that.”
A newly launched lender intends to fuse the benefits of peer-to-peer lending and the pawn market.
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