Safe and convenient: it’s time to try ethical finance. To start with 100 euros are enough

In Europe, social lending is worth € 8.6 billion and is still growing, so much so that the Financial Times has defined this type of investment as “mainstream finance”.

And in Italy? The numbers are increasing, but the lenders’ approach is still a little wary.

The most widespread fear among lenders is that it is risky or that everything can be lost, but these are clichés still linked to a lack of in-depth knowledge of the system. , the leading social lending platform in Italy, explains this with the numbers.

And since the numbers are not opinions, reflection can be useful.

Selective entry.

Social lending does not mean giving credit to people who can not have access to credit by normal means. Rather. In , only 8% of requests are approved (against 35 – 40% of the banks) precisely because the entry criteria are very strict (double check even documental).

A guarantee for everyone. Without wing which the system does not work.

Do the creditors pay?

Thanks to the selection of entry and the efficient recovery entrusted to two specialized external companies, in the default rate is 2.5 percent against 6/7 percent of the banks.

An extra protection.

In order to guarantee further protection and make the investment practically safe, in January 2015 the company set up the ” Lender Protection” Guarantee Fund which, up to the capacity of the fund, guarantees reimbursement up to the full amount (100 per one hundred) capital invested in the event of non-payment. The fund comes into operation after a year (12 installments) of arrears.

How much do you earn?

The interest is established by the lender and not by , but the yield is around an average of 5 percent gross and up to a maximum of 6.50. The rate changes according to the risk profile of the creditor, which at the time of entry is given a score that determines its solidity. The profiles are “conservative”, “balanced” and “dynamic”

And if you want to try …

You can even start investing only 100 euros. A minimum commitment to understand how finance and ethical loan work.