Before you post a loan request, check whether it meets the minimum threshold
Before you post a loan request, it is important to find out what peer lending is because the loans provided here fall under this category.
Who are you?
Dozens of loans are posted at the Socin loan directory but many prospective lenders ignore these requests because the borrowers fail to verify their identities after posting. Every time you post a loan request with the tag “Unverified Identity” next to the request, your chances of receiving funding are almost 0%.
Lenders are here to make money not to throw it away. No matter how much you think you deserve help, most lenders will require satisfactory answers to a few important questions before they provide the funds.
- Can you afford to repay the loan?
- What guarantee do i have that you will honor your promises?
You should consider setting insurance for your account and also providing proof of income. In case you do not want to set insurance (or you can’t afford to), you can specify that you are looking for local lenders so that you can sign legally enforceable agreements, or provide physical collateral to the lenders.
Creating a Loan Request
Before you publish that request you have for lenders, it is important that you figure out which information to present to them. You also need to figure out how best to present it so that it attracts enough attention because catching the eye of the lender is the first step to being funded. The most important thing is to ensure the request is genuine and can be considered serious. So, one-liner descriptions like “I need money” must be avoided.
Quote in USD
All amounts quoted in the loan request must be made in US dollars.
List Payment Methods You Can Accept
It is very important to let potential lenders know immediately which method you prefer to use when receiving the loan and making repayments (or the ones that work where you are). Some methods might be too expensive while others will only work in certain jurisdictions. There is nothing worse than discussing all the other details such as the amount, repayment schedule and interest with the lender, but just when it is time to receive the funds, you realize the method a lender wants to use will not work for you or its too expensive. Save yourself from disappointment by quoting all the methods you can use when posting the project.
How much do you need?
Surprisingly, some borrowers post requests but fail to specify exactly how much they want. Although we provide a loan budget option, it’s just a range by which your loan is classified. For instance the budget range for a small loan is $500-$1500 which can be quite misleading; Imagine if you need $1200 but you fail to specify this, a potential lender might propose $600 which is not enough for your needs. So, make everything very clear by stating exactly how much you need, or at least the minimum amount that you are looking for.
Loan duration and repayment schedule
How long do you think it will take you to repay the loan? Include this information in your description. Don’t forget information about how often you expect to be making repayments. Every loan request is unique so don’t hesitate to quote the kind of arrangement you are looking for even if it’s different from what people are used to. If potential lenders want a different arrangement, they will say so in the proposals they send.
What about the title?
While this is the first thing potential lenders will see, you don’t have to complicate everything by trying to be super creative. Every lender knows that each request has some value so just keep things simple.
You can just quote the amount and duration of the loan as title : “In need of $5,000 for 2 months”
You can also quote the amount and interest: “I need $3,000 to repay with 20% interest”
These are just examples to show you how simple the title should be.
In general, a loan request must have these vital elements:
Your Loan Request will be Deleted
There is a tendency by borrowers to select premium features like “featured”and “sealed bids”
These premium features will cost you money so if you intend to post a free request, avoid selecting them. In the past we have been publishing these requests even when the borrower does not pay the necessary fee (after downgrading them), now your requests will be deleted if you have selected premium features but you have not paid for them.
A perfectly created loan request will earn you 10 free trust credits (TCR). You can bag these points by observing the tips highlighted above when creating the request. Also, make sure your description is around 100 – 250 words. Too short or too long requests do not attract enough attention from potential lenders.