Since this week, Big Lending has added a new functionality that extends our loan offer. Borrowers can borrow from Big Lending not only on their own, but also with another person. Prerequisite: both have to share a household. That’s what we call “partner credit”.
How does this work? A borrower can now select a second borrower from Big Lending in the online application form. He also provides information on the second person and the joint revenue and expenditure account. As a result, not only one, but two persons are used in the calculation and assessment of the debt servicing capacity. Consequently, the second borrower is also included in the loan agreement.
– For investors, debt servicing is now based on two audited sources of income for partner loans. In addition to the first borrower, the second borrower is also available for repayment. In principle, a once completed community loan can no longer become a single loan. For example, in the case of a replacement, the loan agreement is also terminated for both borrowers.
– The borrower can take out a loan together with another person and explain the common personal budget situation. Eventually a higher amount of credit becomes possible.
To be able to compare all loan projects as before, the partner loan is not shown separately in the marketplace. He finds himself thus in the already existing marketplace parameters again. The ability to service a common household can be meaningfully aggregated. Therefore, the second borrower is not separately, but tested and mapped in a common KDF indicator. In terms of credit rating, only the first borrower in Big Lending’s credit check is rated and shown in the marketplace, the second borrower is not.
Regardless of whether they are different occupational groups (pensioners, self-employed persons, employees, etc.) or a single or partner loan.
The aim of this product extension is to provide easier borrowing for borrowers and a debt servicing capability based on two audited income for investors who better spread the risk.