MINI-CROWDFUNDING LENDING SMALL CROWDFUNDING LOAN
The small crowdfunding loan is defined by an option of a money-raising fund where lenders act on the basis of small contributions of money in order to provide a moderate loan to a financing applicant.
The small crowdfunding loan is a small amount of financing developed as part of crowdfunding also called mini- crowdfunding in which individuals lend to other individuals including private persons and entrepreneurs.
The mini-crowdfunding loan is a new form of loan between individuals or private lenders which covers small amounts ranging from 100 Euros to 1000 Euros or from 100 Dollars to 1000 Dollars but which is done instantly.
The small crowdfunding loan is made on the basis and within a legal framework where a specialized platform regulated and authorized by financial authorities and which works seriously with professional interlocutors.
Crowdfunding via peer-to-peer (P2) lending is a formalized form of private lending since it brings in structured and legal manner cash rich private investors and individuals who are looking for money.
Peer to Peer (P2P) lending refers to direct loans between lenders and borrowers via an online platform without the intervention of any financial institutions. The P2P platform facilitates the application through the credit process for the borrower and the lender and proceed with credit scoring as well as underwriting.
P2P services are now using specific algorithms to assess the credit risk of any borrower decide what interest rate to be applied. The platform provides to transfer of the money from the lender to the borrower and makes sure the borrower repay the principal and interests in accordance to the loan agreement.