'Agree It' is a new Facebook app that encourages users to borrow from their Facebook friends. Aimed at 'payday loans' the app facilitates Facebook friends to lend to each other at a mutually agreeable rate.
Borrowers are rated using their 'agree it' history rather than traditional credit ratings, making the app a viable alternative to borrowers who would otherwise be at the mercy of super high interest loan companies.
The agreement is a social obligation rather than a legally binding contract, so lenders need to trust the people they are borrowing to, hence the emphasis on lending to friends. The lender risks losing everything with little comeback.
Although there are a number of low APR lenders in the market, most require perfect credit records.
Omar Fansa, founder of the app, said: "Poor credit ratings and a reluctance to ask for help closer to home means [people] are increasingly taking on unsustainable debt that ruins lives. By seeking and offering funds within our social network, we can sidestep expensive credit and poor deposit rates and enable borrowing between friends and family at affordable rates.”
The app is due to earn money from advertising.