Monthly Archives: October 2019

Earnest online student loan lender announced a brand new app to help students easily get their student loans.

Fintech unveiled a new slogan alongside the application; “Student loans that students love”.

Susan Ehrlich today unveiled the lenders app at Money2020, which takes place in Las Vegas.

After hundreds of interviews and thousands of hours of research, Earnest created this app designed to allow students to apply with transparency and confidence.

There are four main features of the new app.

• Quick eligibility check – Allows students to see what they qualify for before committing.
• 2- Player design – Allows students and co-signers to track each other’s progress and both parties know exactly where the loan application is going.
• Build your own loan – Help students make an informed borrowing decision. The post-graduation moment is a “shock”. Earnest’s new app shows students what school repayment could do for their student loans. Making payments as small as $ 20 could make a huge difference.
• The recovery route explained – What happens after graduation? Earnest introduces a full 9 month grace period over traditional 6 payments to ease the student’s ‘post graduation’ shock.

Timothy li is a main contributor for Crowdfund Insider. Li is the founder of Kuber, MaxDecisions, Alchemy and has over 15 years of experience in the Fintech industry. He is passionate about the evolution of the financial and banking landscape. Kuber launched Fluid, a credit creation product designed for college students who can borrow up to $ 500 interest free. Kuber’s 2nd product Mobilend is a real debt consolidation product, aimed at reducing the debt of all Americans. MaxDecisions provides financial institutions with the latest AI and machine learning algorithms and Alchemy is a state-of-the-art, white-label, end-to-end lending platform that powers some of the best FinTech companies. Li also teaches at the University of Southern California School of Engineering.

The UK’s largest remaining payday loan company will shut down, despite thousands of complaints about its still unresolved lending procedures.

Grant Thornton’s Chris Laverty, Trevor OSullivan and Andrew Charters were appointed co-directors of QuickQuid on October 25, 2019, according to a post on the company’s homepage. The company negotiated at Casheuronetuk.fr, Quickquid.fr, Onstride.fr, and Poundstopocket.co.uk United Kingdom.

All outstanding loans remain subject to the agreed terms and customers must continue to make their payments in the usual way, the company said.

Directors should work closely with the Financial Conduct Authority. The FCA posted an ad on its website announcing that the company entered the administration.

QuickQuid’s parent company Enova, headquartered in the United States, has said it plans to exit the UK market “due to regulatory uncertainty.”

Customers have deposit compensation claims according to a BBC report, noting that they had obtained loans that they were unable to repay.

Notably, QuickQuid is the latest short-term, high-interest loan company to close due to tighter regulations.

QuickQuid has been the UK’s largest payday loan provider for the past few years. The company was larger than the large local loan company Wonga even before the latter closed in August 2018. The Money Shop, another UK lender, also closed earlier this year.

Kenneth Barker said he took on 11 different loans over a one-year period while working as a bartender in Essex in 2012.

The 28-year-old Leeds resident noted:

“The first was for £ 100. I paid back £ 160, but needed a £ 150 loan for the next month. It gradually got worse. To be honest, I knew what I was getting myself into, but sometimes you have no other choice.

Barker filed a complaint nine months ago, noting he had secured unaffordable loans and received £ 50 in compensation from the company.

He added:

“I then turned to the financial mediator. It was accepted and I was offered £ 2,000. I was told I would have it within 28 days. I hope I will always have this money. I have no idea how this will play out or if I will receive this money.

Although he had to wait to receive compensation, he admitted that he was happy that a lender like QuickQuid was going out of business.

QuickQuid is a brand associated with CashEuroNet UK, which also operates On Stride, a longer-term, large loan provider formerly called Pounds to Pocket.

CEO of Enova David Fisher declared:

“Over the past few months, we have been working with our UK regulator to agree a lasting solution to the high number of complaints to the UK Financial Ombudsman, which would allow us to continue providing access to credit. “

He added:

“While we are disappointed that we were ultimately unable to find a way forward, the decision to leave the UK market is the right one for Enova and our shareholders.”

New rules introduced five years ago placed strict limits on the interest rates and fees that payday lenders can charge customers. There were also a large number of customer complaints, noting that they were mis-sold loans that they were not able to repay.

QuickQuid is reportedly facing approximately 10,000 outstanding customer complaints.

The business could close, however, its loans are still valid.

Caroline Siarkiewicz, Acting CEO of the Money and Pensions Department, said:

“While you may be tempted to stop your repayments, sticking to your regular schedule is crucial because if you’ve entered into a loan agreement, you have to stick to it. If you miss repayments, you could be hit with additional fees and charges, and it could hurt your credit rating as well.

Education loan platform Credenc has raised Rs 17.8 crore ($ 2.5 million) in seed funding round led by Omidyar Network India, with participation of EMCV , Better Capital and IIMK Alumni Fund. The start-up intends to build a loan portfolio of $ 500 million over the next five years.

Delhi-based Credenc, founded by Avinash Kumar and Mayank Batheja in 2017, functions as the digital finance office for more than 200 management colleges in 17 Indian cities. The company has approved loans worth over 100 crore rupees ($ 15 million) so far.

The raised capital will be used to expand operations to 1,000 colleges in 50 cities over the next two years. Credenc also plans to recruit through technological, credit and banking partnerships. With over 200 loan applications per day, the company undertakes a rigorous assessment process using a proprietary AI model that tracks 15 million data points to predict future income for applying students. loan.

According to Credenc, the families of about 30 percent of Indian students sell assets to finance their studies, 20 percent borrow from local lenders at rates of up to three percent per month. Another 30 percent drop out of college. The start-up has mapped 70,000 jobs across 50,000 companies in India and developed an in-depth understanding of employability in India. After providing financial support, Credenc works with students and helps them with employability services, supporting applicants in their transition from student to professional life.

Speaking about the funding round, Mayank Batheja, co-founder of Credenc, said: “Currently, only 5% of the $ 50 billion spent annually on university tuition is funded by organized lenders. We believe that this penetration should be at least 15%.

Co-founder Avinash Kumar added that Credenc’s target segment consists of the top 10,000 colleges in India, where he would like to cater for the top 10 percent of students.

The annual expenditure on tuition fees in India amounts to $ 50 billion, or roughly 3.5 trillion rupees, of which only five percent is financed by organized lenders. In the United States, that figure rises to over 60 percent.

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