What are the 2020 news about social lending loans? The new Budget Law has made some significant changes to the panorama of social lending, the loans between private individuals online provided through specialized platforms: Italian private individuals who lend money are the protagonists. Let’s see what are the changes expected for users of this market.
Loans between individuals online: the new 2020 taxation
The change concerns the application of a new tax on social lending loans. This year (2020), based on the new regulatory references, the interests collected through this type of investment will be subject to a fixed withholding corresponding to 26% in relation to the total amount.
This is a significant change because different taxes were expected during the past year (2019). The interest, pertinent to the establishment of the lender’s income, was subject to taxation which ranged from a basic threshold of 23% but could go up to 43%, not to mention the municipal and regional additional charges.
Let’s take an example to understand to what extent the changes will have an impact on savers. Considering an active interest of 6% (understood as gross), in 2019 we had a net which could vary from 3.42% to 4.62%, at best.
From 2020, however, in the face of the same situation, we will have a net income of 4.44%.
Social lending opportunities
It is a regulatory change, that of social lending loans, which will affect many savers, given that P2P lending has gained widespread consensus in recent years.
This is due on the one hand to the disintermediation that only social lending platforms can offer, and on the other hand to the rates which are basically cheaper than traditional loans, presented by banks and financial companies.
It is also a market which, according to analysts, should continue its ascent path. The basis of peer to peer lending is a very simple principle: online platforms bring together individuals interested in receiving a loan and those willing to provide credit, receiving a higher rate than many other investment alternatives. Applicants will undergo an evaluation process.
Applying for loans through capital lender is easy. An online loan application is sufficient to address both banks and private investors at a serious level. Of course, the borrower decides who gets the loan.
Our customer support team is fast and efficient to clear all your doubts regarding personal loan eligibility, procedures, offers, documentation and repayment options. We even contact with the respective lender on behalf of you.