Fairplace.com.br recently launched the first p2p lending service in Brazil. With approx. 190 million inhabitants Brazil could prove an interesting market for peer to peer lending. While financial institutions are the most common source for loans, consumers face lots of paperwork and high interest.
Founder Eldes Matiuzzo knows that, for he worked 14 years for Unibanco. He says user response since the launch is promising with about 25 registrations per day.
Each loan application undergoes risk assessment (Fairplace uses Seresa Experian Data) and only about 20 percent of applications are approved.
Loan requests are listed for a 14 day auction. Borrowers pay fees only if the loan is successfully funded. Fees listed are 5% for one year loans and 8 percent for two year loans. There are additional fees for credit assessment and each repayment installment. Lenders are charged 2% of each repayment (repaid principal + interest).
Currently the average interest rate at Fairplace is 2.99 percent per month, which is much lower than the average for the Brazilian market.