Microlending is a form of lending that takes place in small doses. For example, there are platforms that allow individuals to create a profile and post a loan request. Then, anyone can view that request and offer a portion of the loan. If the entire amount requested is reached, then the loan is processed and the borrower receives the funds. However, if the requested amount is not reached then no money gets transferred and all pledged amounts are returned to the lenders. In this process a borrower ends up with the amount he or she needs and the lenders only had to loan a small amount of money.
This process paved the way for other peer-to-peer lending platforms to come into existence. Lending between individuals is the future of lending and People Capital is a pioneer in the industry.
People Capital’s peer-2-peer platform matches student borrowers and lenders but what sets People Capital apart is the Human Capital Score. With the Human Capital Score, borrowers are evaluated based on their educational merit and the credit worthiness is determined based on data like GPA, standardized test scores, college attending, and major.
Using this unique scoring system both the borrower and the lender benefit from insight into the ability of the borrower to repay a loan.
If you would like to become a borrower or a lender, check out www.People2Capital.com for more information.