LONDON--(BUSINESS WIRE)--The UK’s pawn industry and short-term secured credit market is set for “a shake up” following the launch of a new challenger brand – Unbolted – an online-only peer-to-peer lending platform that lets consumers use their high-value personal assets to access low-cost loans of up to £1,000,000.
Would-be borrowers can apply for secured loans – at market leading rates – against anything from gold to fine art, antique cars to grand pianos, simply by uploading a picture of their item to Unbolted’s website.
Valuation experts will offer loans against the items within three hours and, once the goods are received, consumers could have the cash in their accounts within 30 minutes.
Rito Haldar, co-founder of Unbolted, said: “We set up Unbolted because we want to challenge the way people can access credit through the out-dated pawn industry and other secured lenders. We’ll do that by being transparent, offering fairer terms, cheaper rates and a convenient, easy-to-use online service that puts consumers firmly in control of their borrowing.
“At Unbolted, we use a peer-to-peer online model which strips out many costs and ensures our customers can benefit from lower rates than typical larger loan companies or pawnbrokers.
“For us, it’s about making short-term borrowing affordable and simple so we can help asset-rich but cash-poor individuals and business owners. We want to champion change in this industry.”
The FinTech start-up has already had a wave of enquiries from new customers and is now offering market-leading rates of between 1.5% and 3% per month for loans taken out against luxury items. Typical lenders charge between 5% and 10% each month.
Ashwin Parameswaran, fellow co-founder of Unbolted, added: “We have launched the service now because we know Christmas is an expensive time of year and, come January, many people are looking to consolidate their debts or look around for short-term finance options. We want to help them do that in a cost-effective and convenient way.
“We see no reason why people should be forced to turn to expensive pawnbrokers or short-term finance lenders to do that. Using their luxury or personal assets as collateral gives them access to an affordable option through Unbolted.
“There’s a certain stigma, probably quite rightly, attached to the pawnbroker industry, which is in real need of a shake up. We’re aiming to remove this stigma and create a new financing option that benefits more people. We certainly hope people consider us when they come to review their borrowing options this winter.
“The reality is that in difficult times people sometimes do need extra cash and through Unbolted they now have a smarter, fairer and more sustainable way to do just that.”
Unbolted provides clear information about its interest rates and policies and offers users an easy-to-use online system to manage their loan. Instead of locking borrowers into paying interest on a monthly basis, Unbolted loans accrue interest day-by-day, allowing borrowers to pay back their loan and reclaim their assets at any time.
Unbolted also differentiates itself from other similar lenders as, if a borrower defaults on a loan and there is surplus from any auction proceeds, Unbolted will automatically return it to the borrower via a bank transfer.
The service is available to anyone over the age of 18 as long as they have an asset they can borrow against.
For more information about Unbolted, visit www.unbolted.com
Unbolted is a peer-to-peer personal asset financing service, where individuals can borrow from other individuals in complete privacy, using their personal assets as security. The company is making pawn a mainstream financing alternative in the UK by bringing unprecedented value, fairness and transparency to the industry, and by transforming the model with technology.
Unbolted is a trading name of Open Access Finance Limited, which is authorised and regulated by the Financial Conduct Authority (FCA), with interim permission to conduct peer-to-peer lending platform activity, under firm reference number 663780. Its registered office is at LF1.4, The Leathermarket, Weston Street, London SE1 3ER.
You can find out more about Unbolted by visiting the website www.unbolted.com