The platform helping empower the ‘bank of mum and dad’ – MortgageBusiness.com.au

MortgageBusiness

Tim Dean talked with Annie Kane from MortgageBusiness.com.au earlier this year and discussed Credi’s potential to help struggling millennials who turn to their parents for a loan to buy their first property.

The online platform for managing loan agreements between family, friends, and colleagues has seen great success since their launch in April. Credi has grown exponentially in the Australian market and as of this month has reached $31 million dollars of loans on the platform. Tim Dean further mentions how the platform was created after he

CEO Tim Dean further mentions how the platform was created after he experienced the strain of not being repaid and having to constantly chase up family and friends. As such, Credi aims to formalise and manage lending between family and friends by providing loan documentation, negotiation to a legal contract agreement, repayment reminders and ongoing loan management.

Dean also highlighted that 1/3 of the loans on the platform are property related, whether it be for a deposit or for a house purchase.

 

Tim Dean further goes on the discuss the gap between homeowner equity owners and millennials, and how more and more millennials are having to turn to family for financial help. He further mentions how many millennials prefer not to turn to banks due to the high-cost credit and higher interest rates. That’s when young adults look to their family for help, specifically ‘the bank of mum and dad’.

 

Mr Dean added: “But the problem some parents have is lending their money to their children without guarantees. They might be concerned that their child hasn’t got a job, or they want to protect their wealth for estate planning, or concerned that they might never get that money back for when they need it later in life. That is where we aim to help.”

 

Read the article in full here!

 

Credit: Annie Kane

Source: www.mortgagebusiness.com.au/

 

 

Credi Pty Ltd (Credi) is not a bank or a financial lender. Credi only provides a platform that allows friends, family and third parties to originate, negotiate and conclude loan agreements amongst themselves. Credi does not provide advice, monitor or assess, agree, approve or decline any loan requests nor does the platform perform any funds transfer services.  The use of the Credi platform is governed by Credi’s Terms of Use.

NOTE: The views and opinions expressed here are mine and do not necessarily represent or reflect the views of Credi Pty Ltd.
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