Mr Park defended the company’s terms and conditions, stating it hasn’t had any complaints and other businesses use similar clauses. Our processes are refined, our rates are untouchable and our platform is flawless. Peer-to-peer lending looks and feels like a bank or finance company term deposit, but it's very different. As the platforms get more experienced, it is likely their credit assessments (i.e. With peer-to-peer lending you quite simply borrow from strangers. This includes thorough credit checks by third-party agencies and affordability tests. Forget banks & corporate lenders, get a loan from a New Zealander just like you. What Happens If Your Investing Platform Shuts Down? There’s a new way of borrowing and investing in town. Your guide to investing in shares, bonds, funds, and peer to peer lending in NZ P2P platforms vary in the way they operate, but our must-knows below generally apply across the industry. The biggest risk one faces when lending money is that … It is an unsecured loan. In December, an A1-graded loan with Harmoney earned an investor a gross interest rate of 9.99 percent a year. by Gareth Vaughan. Loan defaults do happen. Peer-to-peer lending is growing but there are risks, especially for investors. There are also ongoing requirements. Ex-pilot Tom Enright, 83, turned to a modern investment for higher returns. If one of your borrowers defaults you have less to lose because your investment is spread over several loans. Of course, the concept of peer to peer lending is just starting in New Zealand and we would therefore expect a few more options to emerge over time, but the market is limited and the key think is to know that we have options for all types of borrowers – and we are getting there. Email us right now - we'd love to hear from you. So you can choose which loans you want to invest in and how many of your “notes” to invest. Existing retail (peer to peer) lenders will no longer be able to invest in new loans. If you invest in a fixed-term deposit with a bank, you can withdraw with or without penalty but access to your cash is near immediate. Lowers the price of doing business. Borrowers list their request on a provider’s website, and investors browse the website to decide which loans to invest in. The aim is to help individuals or businesses to borrow at reasonable rates. We welcome your stories, tips and any feedback via. The Financial Markets Authority (FMA) has standards for licensing P2P lending providers. When your money is in the investor account you aren’t earning interest. It is these mortgage advances that are provided to our Investors as property supported investment opportunities This is a peer-to-peer (P2P) lending investment suite of Products. Peer-to-peer lending is a type of financial market service covered by the FMC Act. The peer to peer value proposition is extremely strong if offered in the right way. In 2015, LendMe announced it was the first peer to peer lender in New Zealand to specialise in secured lending, offering a range of loan products, secured by mortgage over the borrowers’ assets. Trusted Insurance Brokers in Christchurch, American Express Airpoints Platinum Review, Best Foreign Currency Debit & Credit Cards, Renting Directly to Tenants vs Using an Agent, Trusted Mortgage Brokers in Napier and Hastings, Fixed or Floating Mortgage Rate Calculator, How to Check Your KiwiSaver Contributions, New Zealand Defence Force KiwiSaver Scheme, 65+ Best Online Shopping Websites in New Zealand, Trusted Lawn Mowing Services in Wellington, Trusted Lawn Mowing Services in Christchurch, The Complete Guide to Renting in New Zealand, Hardship Assistance - Urgent Costs and Living Expense Assistance, Government Departments Helping New Zealanders Directly, Student Job Interview Questions and Answers, What are the risks – Why P2P isn’t for everyone, Read our detailed Lending Crowd review here, Financial Markets Authority currently lists seven P2Ps. Image sourced from Shutterstock.com. The main risk for investors is they might lose their money. LendMe is a peer-to-peer lending platform that simply offers you more than both banks and other peer-to-peer lenders.. We strive to listen to the needs of borrowers and pay them the attention and care they deserve.