About the company

People Capital is a company that helps students who seek loan by providing industry solutions with its state of art technology services. They simplify the process of borrowing and lending by employing advanced technology and eliminating the middleman. The student loan platform:

* conforms to student loan, consumer finance and securities regulations
* capable of processing whole loans, peer-to-peer loans and syndications
* offers traditional and proprietary credit underwriting tools, e.g. their patented Human Capital Score projects a student’s future income on the basis of education metrics like standardized test scores, school and major and GPA, which helps estimating the credit risk.

FICO Score is not the right measure for students who lack credit history. Though the present edition of Human Capital Score is best designed for bachelor’s degrees, they are working on its improvement to make it applicable for other degrees too. People Capital additionally offers turnkey solutions for origination, selection and servicing of private student loans. People Capital also offers turnkey solutions for origination, selection and servicing of private student loans. Their online software enables processing of full loans, including P2P loans. Other notable features are full compliance, tax and risk management reporting, tools for proprietary and traditional credit underwriting.

Who can borrow?

For being eligible for borrowing from People’s Capital you have to be:
* enrolled at least as a part time student and pursuing a degree at a Title IV-eligible US educational institution.
* A citizen and resident of the United States.
* possess a valid Social Security number.
* At least eighteen of age or age of majority as specified by your state of residence
* Be in a state where People Capital is operating currently

How to borrow

Anyone who fulfills the above noted criteria can borrow from People Capital by following these three simple steps:

Step 1: Register with the platform

Fill in the borrower registration form and complete verification process by submitting required documents.

Step 2: Make a loan request

You have to specify the amount you want to borrow and the maximum rate of interest you are willing to pay, the type of loan you would like to have and the duration for which you want the auction process to remain open.

Step 3: Lenders bid on your loan

Lenders on People Capital then bid for the entire or part of your loan: they specify the amount of loan they can provide and the rate of interest they would charge.

Benefits for the borrower

The lending platform offers a range of loans for students like short or long term loans, direct amortization and balloon payment. People Capital employs advanced methodology for assessing credit risk to provide funding at reasonable rates and terms, even to those without any credit history.

How much money can I borrow?

The maximum loan offered is either as per the state legislation or the total educational expense as certified by the educational institute. However, at present the maximum amount that you can borrow is limited to $25,000.

The minimum amount you can borrow is decided by the type of loan you opt for and the state of your residency.

What types of loans are available?

All these loans are unsecured with tenure varying from 2 to 15 years. You can opt for any of these three types of loans from People Capital with variable repayment options and maturities. These are:

1) Interest Only with Balloon

Students opting for this type of loan are required to pay either the interest due on the principal or at least $50 (whichever is greater) on a monthly basis during the duration of their enrolment with the school and for eleven months after their estimated date of graduation. On the twelfth month after
the expected date of graduation, the rest of the loan falls due in full. This last payment is known as a balloon payment. The duration of Interest Only with Balloon loans (2 to 5 years) is based on the student’s year of enrollment. The minimum amount for this type of loan is $3,000.

2) Standard Private Loan

The borrower opting for this type of loan pays either the interest due on the principal or at least $50 (whichever is greater) on a monthly basis during their stay in school and for eleven months after their estimated date of graduation. Subsequently, from the 12th month after the expected date of graduation date, the rest of the loan is paid in monthly installments totaling interest and
principal till the loan is fully paid back. This last series of monthly payments is known as amortized payments. Standard Private Loans are available for ten or fifteen years. The Interest Only periods depend on the student’s year of enrollment. Students need to request for a minimum of $ 5,000 for this type of loan.

3) Straight Amortized Loan

In this case the borrower is required to make monthly payments towards the principal amount and the interest till the loan is paid back in full. It doesn’t contain any “Interest Only” period. The duration of this loan is three years and the minimum specified amount of loan is $3,000 or as specified by state law.

What types of borrower fees are associated with my loan?

People Capital charges an application fee that you can pay through your credit card. Further, it charges an origination fee that is deducted at the time of handing over of loan check to you. You are also required to pay fee for making delayed payments.

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