Lender FAQs

🚀 Getting Started with Lending

Do lenders need to meet the account requirements?

Yes. No Exceptions!

How do I lend on this subreddit?

Follow these steps:

Review [REQ] Posts: Borrowers post their requests with loan terms.
Decide to Lend: Perform any due diligence or vetting necessary.
Agree on Terms: Confirm via messages or verbally with the borrower before proceeding. If funds are sent via a method that charges fees, that must be disclosed. The repayment method must also be disclosed as well as any late fees.
Use the $loan Command: Record the loan on the [REQ] post using LoansBot commands.
Send Funds: Transfer money to the borrower.
Record Confirmations: Borrower confirms receipt with a $confirm command.
- If a refund occurs, the lender must reply to LoansBot with "refunded" to alert moderators to remove the loan from the database. Please note that this process may take several days, depending on moderator availability.
Receive Repayment: Use $paid commands for partial and final payments.
Complete the Loan: After the final payment, mark the loan as complete with a [PAID] post.

📊 Lending Decision Criteria

How do I evaluate a potential borrower?

Evaluate borrowers by reviewing:

Account Activity: Review the user’s post and comment history for patterns, noting karma, account age, and overall subreddit activity. Watch for red flags, including activity in drug-related subs, snark communities, excessive begging, or subreddits such as unethicallifeprotips, illegallifeprotips, chiraqology, and nystateofmind.
Borrowing History: Review feedback from [PAID] or [UNPAID] posts.
Due Diligence: Conduct a thorough check by searching the borrower’s profile on Reddit, as well as on social media platforms such as Facebook, Instagram, and Twitter.

For a comprehensive list of red flags, ~~see this guide.~~ (Guide coming soon!)

What information should I request from borrowers?

Lenders may request the following information to confirm the borrower’s identity and reliability:

Full Name
PayPal Email
Primary Email (with proof)
Employment Proof
Phone Number
ID Verification (photo and selfie with ID)
Utility Bill for location confirmation

⚠️ Prohibited Information: Never request sensitive information that could cause security risks. Violations will result in a ban. Review the Prohibited Information & Items list.

📅 Repayment Issues & Unpaid Loans

What if the borrower stops contacting me or defaults?

Attempt Contact: Use all available contact methods (email, phone, etc.).
Allow for Grace Period: Wait 1-2 weeks for a response.
Escalate if Necessary: If unresolved, file a [LATE] post, and if still unresolved, proceed with an [UNPAID] post. For further assistance, you may contact the mods here.

Dispute Guidelines for Non-Repayment.

Timing Requirements: Wait at least two weeks after the last borrower response and missed payment date before escalating.
Justifiable Exceptions: Moderators may approve earlier escalation if justified.

⚖️ Interest Rates and Legal Considerations

How much interest should I charge?

Review the interest rate guideline. Comply with applicable usury laws based on your location. Usury information here.

What are Usury Laws, and is lending here legal?

Lending on r/borrow is legal, but excessive interest rates may violate local usury laws. It’s the lender’s responsibility to ensure compliance.

🏦 Lending Operations & Subreddit Policies

Can I manage loans with a team or delegate lending duties?

Single Account Policy: Each lending account must be managed by a single individual. Unauthorized delegation or sharing of borrower information is prohibited. For more details, click here.

Recording Loans on r/borrow

Transparency Requirement: Loans to active r/borrow users must be publicly recorded to uphold community standards. Failing to record a loan may result in a ban.

READ Off-Books Lending: Conditions for Exclusive Borrower-Lender Relationships.

Why does your sub not allow activity on other lending subs?

Our sub doesn't allow activity on other lending subs to maintain a clear boundary of oversight and accountability within our own community. This ensures consistency in rules, reduces conflicts of interest, and prevents potential issues like cross-banning abuse or scammers taking advantage of discrepancies between different subreddits' guidelines.

And yes, rule 7 applies equally to lenders.

🚫 Bans, and Additional Information

What if I am temporarily banned?

No Lending During a Ban: Lending while banned results in an unrecorded loan, violating subreddit policy and potentially leading to a permanent ban.

I’m permanently banned, how can I mark my loans as paid?

If you’re permanently banned, you won’t be able to mark your loans as paid directly. Instead, have your borrower reach out to the moderation team through modmail to request assistance with removing the loan from the database.

What if I"m permanently banned and I need to mark my borrower unpaid?

Please reach out to the moderation team through modmail.

What is ban evasion?

https://support.reddithelp.com/hc/en-us/articles/360043504811-What-is-Ban-Evasion-

I have concerns about the professionalism of your moderator, Dr3wcifer. Could you please guide me on how to submit a formal complaint?

Sure! You can file a complaint HERE.

I was banned years ago for XYZ, can I be unbanned?

No. We do not remove bans over a year old.