The Company provides personal loans for typically £1,500 - £5,000 which require the support of a guarantor. George Banco therefore offer finance to the credit starved sector of the population who, for various reasons, have a poor credit rating but need instant access to capital. George Banco is also accredited by the Consumer Credit Association and is regulated by the Financial Conduct Authority.
There is currently only one major supplier of guarantor loans in the UK, Amigo Loans, meaning there is significant opportunity for another lender to enter the market and satisfy the growing demand. George Banco anticipates a strong second mover advantage for the Company to capture a significant market share through its innovative, technology driven solution.
Due to tightening FCA regulation a third of one of the more popular forms of consumer finance, including payday lenders, have been excluded from the personal finance market. In addition, prevalent forms of alternative consumer finance are often renowned for poor practice when it comes to reclaiming debts. George Banco’s guarantor loan offers the circa 14 million consumers who are not eligible for mainstream finance another more reasonable option.
The rate of interest charged to a borrower will be 46.8% APR, which is a very competitive rate for this product. The Guarantor Cash Loan is a closed end loan facility, with fixed monthly instalments secured by a Guarantor to meet a Customers’ need for consumer finance. The product has a Fixed Interest Rate, calculated on a monthly basis, over the fixed term of the loan.
Commenting on the launch, Managing Director of George Banco, Marc Howells, said:
“We are very excited to be launching our platform at a time when the sector is at an early stage and therefore presents significant opportunity. There is undoubtedly real demand for this type of finance from the millions of consumers who are currently deprived of credit. George Banco offers the finance for practical necessities that are not currently available in the market place without having to pay very high rates of APR. These financial products only serve to reinforce the debt cycles of millions of UK consumers and worsen their credit rating. Through our Board’s strength and proven experience within financial services, banking and consumer finance; we strongly believe we are offering a truly unique product.”
