P2P loans to finance giffgaff mobile handsets
RateSetter has teamed up with giffgaff to finance phone handsets through peer-to-peer (P2P) loans.
Giffgaff members can now purchase handsets financed by "price-competitive" RateSetter loans, with APRs varying between 9 and 15%.
The handset loan can be applied for at giffgaff.com and members can choose how much to pay upfront and how long they want to repay the remainder.
In the first partnership of its type, giffgaff - the mobile network run by its members - and P2P lender RateSetter say they have joined forces to further their mutual commitment to "cutting out excessive costs".
RateSetter has introduced a new credit process specifically for giffgaff members purchasing mobile phones. The P2P lender said the process combines its own comprehensive credit checks and processes with the giffgaff's anti-fraud tools, which it said are the best in the telecoms industry.
Rhydian Lewis, chief executive of RateSetter, said: "We're proud to be partnering with giffgaff, a company which shares our belief in reducing the cost of expensive middlemen and passing the savings that produces on to our RateSetter customers.
"We've never before offered direct loans for a single product like a mobile phone, and have spent months developing our systems to manage and mitigate risk in order to handle the increased number of borrowers expected to take out these new, smaller loans."