1. Frequently Asked Questions

How is it that everyone wins?

When you have hundreds of branches, tens of managers, thousands of employees, and tens of thousands of sandwiches…the overhead expense is immense, and there’s just no way around it.
BLender reduces all of that. We don’t have branches, thousands of employees, or overhead expenses.
The result: The borrower pays a lower interest rate on a loan, and the lender gets more for his/her money. Everyone wins.

How do I create a BLender account?

Download our smartphone app (“BLender – Loans between people”) and choose “Open a New Account”, or sign up on our website.

Is BLender an online bank?

No, BLender does not operate like a bank in any way. We don’t manage accounts, nor do we hold users’ money. We simply offer a platform that connects people who want to earn an attractive return on their money and people who are looking for a quick loan with fair terms.

What does “loans between people” mean?

The term is also known worldwide as “peer-to-peer lending,” social lending utilizes a safe, transparent and user-friendly online platform to connect people looking to earn attractive yields on their money and those looking to get a quick loan with favorable terms. People to people, that’s the idea.

Who are BLender’s members?

BLender’s members are individuals like you and like us, as well as companies and corporations, who want to borrow money with fair terms or lend money and earn an attractive return on their liquid funds.

How do I close my BLender account?

Get in touch with us, and let us know that you want to close your account.

2. Safety and Peace of Mind (Questions on Security and Screening of Borrowers and Lenders)

How do you screen borrowers and lenders?

BLender strictly and thoroughly screens individuals based on personal and social profiles, among others, and, of course, consideration of their financial standing using complex and sophisticated algorithms and technology.

Will my identity be exposed?

The process is completely anonymous. Your personal information is stored securely within the system. Other users may only see the username you chose for yourself when you signed up and basic information on your loan request.
We encourage you to take a look at BLender’s privacy policy for further information.

Is it legal?

BLender is completely legal. We aren’t part of the “gray market,” and we don’t hide anything – we make everything clear and transparent. You can see who’s behind BLender, and everything is conducted transparently and safely – for us, for the borrowers and for the lenders.

Who’s behind BLender?

BLender Global is backed by Aviv Technological Development Ltd., part of the Aviv Group, one of Israel’s largest, most established construction companies operating since 1963. BLender’s partners are: Dr. Gal Aviv (CEO) – PhD in nanophysics, Boaz Aviv (CTO) – graduate of an elite technological unit of the IDF and BA in physics and economics, Barak Gur (VP Product) – master’s degree in physics, Giora Ofer – former CEO of Discount Bank and a partner at Lahav Fund, and Doron Aviv – chairman of the Aviv Group. BLender is also supported by a team of senior consultants with expertise in the financial industry, law and taxation.

BLender Global’s board consists of senior leaders in Israel’s capital market: Doron Aviv – chairman of the Aviv Group, Giora Ofer – former CEO of Discount Bank and a partner at Lahav Fund, Dov Kotler – former CEO of Isracard, CAL and Union Bank, Chris Gottschalk – Blumberg Capital, and Dr. Moshe Olshevsky – a founder of ISE.

BLender Global’s team of consultants consists of senior experts in the financial industry, law and taxation, Blumberg Capital – a leading American venture capital in FinTech, The Lahav Fund, Alter Attorneys at Law, KPMG, Giza Singer Even, Barnea & Co., Primesec – information security, privacy and regulatory.

3. Lending Money through BLender (Lender FAQs)

Why P2P?

Peer-to-peer lending has been operating successfully around the world for almost ten years. Information is accessible. Everything is visible, familiar and known. More and more people communicate with more and more other people and know about their lives, their habits and their friends. Above all, both sides must feel comfortable—that is the essence of lending between people.

Why should I lend money to people online?

The world as we know it is changing before our eyes. Technology is challenging the traditional ways of doing business. We don’t have branches, thousands of employees or overhead expenses. That means higher returns for you. That’s the primary advantage of peer-to-peer lending over other investment and savings options.

Do I have to pay to be able to lend money?

No. The money that you choose to lend will be transferred to the borrowers who meet the criteria and to the SafeGuard fund that protects you. We collect management fees from the borrowers’ monthly payments. (For more information, see the fee schedule).

How do I transfer the money that I want to lend?

The money that you choose to lend through BLender is transferred to a designated account. Therefore, you must perform a bank transfer.

What happens after I transfer the money to you?

Your money is held in the designated bank account until you choose to lend it to borrowers through BLender. Payments that you receive will go into this account. You may then choose to lend the funds out again or transfer them to your own account.

How do I lend money?

It’s simple: Choose how much money you want to lend (use the Lending Simulator) and click “Create Portfolio.” BLender does the work for you and comes up with a portfolio made up of a variety of loan segments in order to maximize the return on your money and minimize the risk.

How much can I lend? Is there a minimum/maximum?

The minimum and maximum amounts are updated from time to time. Currently, the minimum for creating a loan portfolio is €50. The maximum is the balance in your account. You may fund your account with €1,000 or more. Should you need any assistance with lending money, please don’t hesitate to contact us.

When will I begin to receive payments?

As soon as your money is transferred to the borrowers, they will begin to pay you back in monthly installments.

How can I check the status of my loan portfolio?

BLender is proud to offer complete transparency. You can check the status of your account on our website on the “Lender Administration” page (see a sample) at any time.

As a lender, do I need to provide personal information when I sign up?

Yes, you are required to fill out a short questionnaire.

How is the interest rate on the loan determined?

Each borrower goes through a strict, thorough and multilayer screening process through BLender’s system. At the end, the system sets the minimum interest rate for which each borrower is approved. The borrower sets the maximum interest rate he/she is willing to pay on the loan, and the loan is then offered on BLender’s loan market along with other loans. The DirectMatchTM system creates the optimal loan portfolio with the greatest returns for you and widest distribution.

Can I lend out the money that I receive in loan payments?

Yes. As soon as the right loan arrangements for you are found, you will begin to receive fixed monthly payments consisting of the principal and interest. You may then choose to lend the funds out again or transfer them to your own account.

How do I withdraw my money from BLender?

You may withdraw the available money in your BLender account at any given moment. Check “Withdraw Money” on the “Lender Administration” page to see how much is available to be withdrawn.

How can I get back the money I lent?

You can sell the loan through ReBlend.

Will I know whom I am lending to?

No. We make a point of safeguarding the anonymity of all BLender users, lenders and borrowers alike.

Can I change the duration of a loan?

No, the borrower is the only one who can shorten the duration of the loan. However, if you want to get your money back before the maturity date, you can sell the loan through ReBlend.

Is there an automated way to lend out the money that comes into my BLender account from loan payments?

Yes. You can use the AutoBlend (Premium Track), which allocates money to loans for you automatically: every few days for the amount set in the AutoBlend (Premium Track) or the amount of available funds in your account, whichever is lower.

Will I pay taxes on the interest earned from the loan?

BLender acts in accordance with all tax laws and regulations. BLender will deduct withholding tax per the law; however, we recommend that you consult a tax professional.

Does BLender set up automatic direct deposits from my bank account for the Frequent Lender Track?

No. You must set up the direct deposits to your BLender account through your bank.

Can a business or a company also lend money through BLender?

Yes, businesses and companies that would like to lend money are invited to sign up to the platform.

I signed up as a business or company – how do I report interest earned to my accountant?

Report the interest earned, which is detailed in the report you receive each month by e-mail, to your accountant.

Is the AutoBlend (Premium Track) activated automatically for me?

During the signup process we will offer you to activate the AutoBlend (Premium Track), that way, you’ll be able to continuously lend the funds that accrue in your BLender account and receive the principal and interest payments on them. You can log into your account at any time and disable (or enable) it.

What does the AutoBlend (Premium Track) give me?

  1. Convenience. Instead of logging in and choosing a new loan portfolio each time, the automated lender can allocate your funds in an automated way. That way, you’ll be able to continuously lend the funds that accrue in your BLender account and receive principal and interest payments on them.
  2. Maximize returns. The automated lender takes advantage of the payment you received on previous loans, which are deposited into your account each month, and maximizes the returns and scope of your lending.

How much does the AutoBlend (Premium Track) cost?

The AutoBlend (Premium Track) is free of charge. All of our fees are listed in BLender’s fee schedule and are updated from time to time.

How long is the AutoBlend (Premium Track) valid for?

The AutoBlend (Premium Track) is valid indefinitely. You may deactivate it at any time by clicking on the button on the “Lender Administration” page.

How do I start/stop the AutoBlend (Premium Track)?

The AutoBlend (Premium Track) is enabled by default, during the registration process we ask you whether you would like to disable the AutoBlend (Premium Track). You can also enable/disable the AutoBlend (Premium Track) in the lender dashboard.

What do I do with the loan payments I receive?

You can withdraw them to your bank account at any time, lend them again yourself or you can let the automated lender’s AutoBlend (Premium Track) automatically reallocate the funds available in your account (including loan payments received to your BLender account) to new loans.

Can I create a savings plan through BLender?

Instead of creating a zero-return savings account through the bank, you can use BLender’s Frequent Lender Track and earn interest on your liquid funds.

What is the Frequent Lender Track?

The Frequent Lender Track lets you earn interest on your liquid funds through automatic direct deposit from your bank account to your BLender account.

How much money can I transfer through the Frequent Lender Track? Is there a minimum/maximum?

The minimum and maximum amounts change from time to time. Currently, any transfer of €500 or more is accepted (there is no maximum).

How much does it cost to activate the Frequent Lender Track?

The track is free of charge. All of our fees are listed in BLender’s fee schedule and are updated from time to time.

How do I deactivate the Frequent Lender Track?

To deactivate the Frequent Lender Track, you must cancel the automatic direct deposit from your bank.

Who is the Frequent Lender Track for?

The track is intended for individuals who want to save through direct deposit and earn interest rates.

What is BLender’s SafeGuard fund?

BLender created a SafeGuard fund to protect lenders should a borrower be unable to repay his/her loan for whatever reason.
The fund, which is not-for-profit, is funded from a designated percentage of each loan and is held to offer lenders maximum protection. (For more information see the funds rules and regulations on the SafeGuard fund page.)

What happens if a borrower is unable to pay back his/her loan?

BLender takes all necessary measures to ensure that this does not happen, including taking a SafeGuard fund allocation to protect lenders should borrowers be unable to repay their loan for whatever reason.

Furthermore, the wide distribution made possible by DirectMatchTM provides multilayer protection for each and every lender. Nevertheless, should a borrower fail to repay his/her loan, we take all legal steps at our disposal, with the aid of the leading law firms, to collect the debt and pass it along to our lenders.

Where does the money in the SafeGuard fund come from?

The money in the SafeGuard fund comes from a designated percentage of each loan and is presented to the lender and borrower when the loan is generated.

When am I eligible for payment from the SafeGuard Fund?

A lender is eligible for a SafeGuard Fund payment if and when a borrower defaults on four consecutive payments and there is a sufficient balance in the SafeGuard Fund.
If this is the case, the SafeGuard Fund will repay the principal of the last four monthly payments in question, and the fifth one. From now on, the lender will be paid the designated monthly payment (the principal) at the end of each month until the loan’s maturity.

What percentage is allocated to the SafeGuard fund?

Each lender and borrower allocates a designated percentage of the principal of the actual loan given, usually between 1 and 5 percent, based on the company’s estimated default likelihood.

What happens if the borrower decides to pay back the loan before the maturity date (early repayment)?

The lender receives a payment in accordance with the balance of his/her SafeGuard fund allocation as long as there is a sufficient balance in the SafeGuard fund.

As a lender, in what cases would I be reimbursed for the money I deposited into the SafeGuard Fund?

A relative reimbursement for the money deposited to the SafeGuard Fund will be received in case the borrower has paid back the loan in full before the maturity date (early repayment), or if you sell your loan on ReBlend. Both as long as there is a sufficient balance in the Safeguard Fund.
No reimbursement will be received for loans paid on the maturity date (no early repayment event).

4. ReBlend (Lender FAQs)

If I sell my loans through ReBlend will I be credited for the balance of the SafeGuard fund?

Yes. At the time of the sale, the seller will be credited for the SafeGuard fund balance.
For example:
Original loan – €1,200
SafeGuard fund allocation – €24
Total loan principal paid back up until date of sale – €200
The sales price of the loan through ReBlend equals the balance of the principal of the loan – €1,000.
The credit for the SafeGuard fund balance is €20 and is proportionate to the ratio of the balance of the loan principal to the original loan: (1,000/1,200 * 24 = 20).

How does it work?

  1. If you want to sell back an existing loan, go to the “Lender Administration” page and click “Sell Loans.”
  2. Select the loans that you want to sell, and click “Sell Selected Loans.”
  3. The loans that you selected will be offered to other lenders who might be interested in buying them.

Is there anything like this elsewhere in the world?

There are only a few companies in the field of peer-to-peer lending that offer their customers’ a similar service. In the U.S.A, Lending Club and Prosper customers enjoy similar benefits, but buying and selling of loans takes place separately. In the U.K., Zopa lets lenders liquidate some of their investments, and the company sells some of the loans in the lender’s portfolio based on its considerations.

How many loans can I sell?

As many as you want. You can select a few loans to sell or all of them.

How many loans can I buy?

As many as you want. You can choose to buy as many existing loans as you like.

How much does it cost?

Selling loans incurs a fee of the sales price. The fee is stated before selling the loan. There is no fee for buying loans.

What are the benefits?

  1. High liquidity of your loan portfolio. The money is available to you at all times.
  2. Flexibility. Have a sudden, unexpected expense? You can sell the loans you gave at any time.
  3. Control. You decide which loans to sell and when.
  4. Confidence. Liquidity, flexibility and control increase the confidence of BLender’s lenders.

Why should I buy an existing loan?

If you are interested in lending for a shorter amount of time or at a different interest rate or different amount, it is worthwhile to step into the shoes of a lender who wants to sell (once you have checked the terms of the loan, that is). You get flexibility, convenience and control.

I put a loan up for sale, but I changed my mind – what do I do?

No problem. Go to the Lender Administration page or the Loan Sales page and click “Cancel” next to the loan in question.

I put a loan up for sale and received loan payments on it in the meantime—who gets that money?

You do, of course! The loan is yours until another lender buys it.

I put a loan up for sale – when will it be sold?

The loan will be sold as soon as another lender buys it.

5. BLender – The Mobile App

How do I download the app?

The BLender – Loans between people app is available for download from the App Store and Google Play.

What can I use the app for?

You can sign up for BLender, make transactions and check your account using the app.

Does the app work on any smartphone?

Yes, the app is available for iPhone and Android users and may be downloaded for free from the App Store or Google Play.

6. BLender Loans (Borrower FAQs)

Who can get a loan through BLender?

Any Italian, Lithuanian or Israeli citizen with a monthly salary of at least 1,000€.

How do I know my monthly payment level?

When you place your loan request, you will see your expected monthly payment. Once the request has been completed, the amount will be displayed on the “Manage My Loan” page.

How do I apply for a loan?

  1. Go to “Apply for a Loan” on BLender.
  2. Choose your loan amount.
  3. Provide some information about yourself.
  4. Select your preferred interest rate – use the loan calculator.
  5. If the loan is approved, you will be notified within a few minutes.

How do I pay back a loan before the maturity date?

It’s easy: just click “Pay Current Loan Balance” on the “Manage My Loan” page.

Do I pay taxes on my loan?

No. Only private individuals – not financial professionals—may take loans through BLender. Therefore, there are no taxes on loans. If you are a financial professional, unfortunately we cannot offer you a loan at this time.

Can I change the terms of the loan once it has been put up for auction?

Once the auction for the loan begins, you cannot change the terms. Just as, once a lender makes an offer to finance your loan, he/she cannot change the terms of the offer. That way, both sides can be confident that the terms of the loan won’t change throughout the auction.

My loan is fully funded. What happens now?

The money is now in your bank account for you to use freely. Your payments will be deducted automatically from your account per the agreed-upon schedule. You can check your account to see the status of your loan at any time.

What is the duration of the loan?

Loans are given for up to 3 years. You choose the duration that works for you.

Why wasn’t my loan approved?

In order to secure the lenders’ money, each borrower undergoes a strict and thorough screening process of his/her personal and financial data. If your loan was not approved, the screening may have determined that you do not have the necessary loan repayment ability. Above all, both sides must feel comfortable with the transaction—that’s the essence of lending between people.

What happens after I apply for a loan?

From the moment you apply for a loan, the most important thing is to promise your lender that he/she will get the money back. We conduct a thorough online screening quickly and with no bureaucratic hassles. If you are approved, your loan request is presented to the prospect lenders who agree to your interest rate terms.

With BLender, who lends me the money?

The loan comes from people who want to earn an attractive return on their liquid funds. Behind every loan there are, for the most part, a number of lenders—private individuals, companies and corporations—whose money is distributed in an optimal way to minimize the risk.

How long does it take to get a loan?

You will get confirmation of eligibility shortly after completing the loan application process. The process of financing your loan then takes a few days, during which you will be able to stop the process and receive the funding received thus far.