Launched in 2018, SoLo Fund is an app that allows borrowers to borrow money from their peers. It is based in Los Angeles, California and since it opened its doors, it has helped over 100,000 individuals to access affordable loan services. So far, it has processed loan amounts of more than $3.5 Million.
Unlike with financial institutions where you repay your loan with interest, with this app, borrowers pay for the loans with appreciation tips. Borrowers can access loans amounts from $50 up to a maximum of $1,000.
To find out if SoLo Funds is the perfect way to solve your financial challenges, here is an in-depth guide of its key features, benefits, and requirements.
Unlike most lenders who will charge you interest for their lending services, SoLo Funds doesn’t charge any fees to borrow. The only cost you’ll incur is the tip, which is not specified.
You are given the freedom to choose the amount that you are willing to give as a tip – it can be as cheap as 0% and as high as you may want it to be. However, take care not to give very high tips and end up paying too much that you’ll be strangling yourself financially.
Here is an example – You can borrow a $200 loan which you’re required to repay within 2 to 4 weeks. An average, the maximum amount of tip to give should be anything below 10% of the principal amount.
Otherwise, you may end up paying more than you would with common payday loans. Remember that you’ll still be on the hook for rollover fees as well as collection fees if you’re unable to repay the loan on time. The loan term for all loans is 14 to 30 days.
You can also choose to donate to the SoLo Community to keep it going.
SoLo Funds gives you access to the most affordable loans services in the market. Unlike other lenders who offer loans with multiple fees, here everything is 100% transparent. You won’t find any surprise fees or interest. Before signing up for a loan, you know exactly what you’ll be getting yourself into.
You know what to pay back and when to pay it, and so you can plan your finances accordingly. As well, it offers financial literacy courses to help you make informed financial budgeting and planning decisions.
If you face financial difficulties and are unable to pay your loan on time, you can request for an extension. You can be added 14 more days with a fee of 5% of the due amount or $5, whichever is greater.
If you get the loan and repay on time, it will be an excellent opportunity to build your credit profile. If you default, you could impact your credit score negatively. All collections are reported to credit bureaus.
Getting a loan through the app is also simple. All you have to do is to create an account, enter how much you want to borrow, how much you are willing to tip, when you want to repay the loan, and the loan purpose.
SoLo insists that you should include simple details on the loan purpose like medical bills and electricity bills, instead of just saying bills. You’ll be required to provide some information to verify your identity. It’s only a measure to keep you and the lenders safe.
The only upside is that you can wait for up to 30 days for someone to fund your loan. So if your case was an emergency, then you want to consider other options. As well, there is no guarantee that you’ll find a lender. It’s possible to wait in vain.
Other upsides and downsides of using this app to apply for a short-term loan include;
Can I send a direct thank you note to my lender?
SoLo Funds doesn’t share its user’s personal information. So there is no way to contact a lender. However, you can leave a positive review on the app store page.
Do I need my Social Security Number?
After creating an account, SoLo Funds will need a way to verify your identity. Your SSN is a unique way to verify you.
What happens if am unable to repay the loan?
If you are not able to pay your loan in time, you can request for a 14 days extension which comes with a fee – $5 or 5% of the due amount, whichever is greater. If you’re still unable to pay the loan, you lender can either offer to gift you the loan or send your account to collections.
If your loan is sent for collections, it will incur an additional fee of $15. As well, if your account will be reported, it is likely to hurt your credit rating. Therefore, borrow wisely.
To apply for a loan through SoLo app, you must;
All US are eligible to apply for a loan with SoLo Funds.
For any inquiries, you can direct them to SoLo Funds customer support team at their help centre.
The application process is simple, and it’s completed via an app. To apply, download the SoLo Funds App on Google Play or App Store. Then follow these steps;
Step 1 – Open the app and sign up. Confirm your email.
Step 2 – Enter your details, including your full names, and phone number – a verification text is sent.
Step 3 – Upload a photo of your government-issued ID (both the front and the back).
Step 4 – Enter your date of birth, Social Security Number, and full address.
Step 6 – Connect your Debit card or bank account to the app.
Step 7 – Start borrowing
Unlike most online lenders who will squeeze your finances to make profits, SoLo Funds focuses on helping you succeed. The only downside is that you can wait for as long as 30 days to get a lender. There is no also any guarantee that you will get a lender.