New online platform allows you to 'auction' your loan to the lowest bidder

There can be little doubt that the world of finance and lending has become more competitive.

Imagine, though, a bidding war where lenders fight between themselves to give you the best deal on your mortgage, car or personal loan.

That’s actually a reality with a new online platform that allows you to “auction” the loan you want to the lowest bidder.

Lodex began operating in Australia in November.

Co-founder, Mic Phillipou, describes it as an auction-style marketplace where banks and brokers bid for your business.

“I guess it’s a paradigm shift. As opposed to you having to go out and seek the best offer or rate from a bank or a broker, they’re coming back to you. You just have to sit and wait,” he said.

The platform is very different from comparison websites, which list dozens of loans and rates from a variety of lenders.

After signing up to Lodex, you put in how much you want to borrow, what it’s for along with personal details about income and the like.

You can ask for a free credit score and choose to display that, although you don’t have to reveal your name.

Once you submit that, the auction starts and lenders come back with their bids – the best rate they can provide for the loan you want.

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Source: New online platform allows you to ‘auction’ your loan to the lowest bidder – Nine News