IMPORTANT LENDER INFORMATION
Seek independent financial advice
The information shown does not constitute advice or a personal recommendation, and therefore you should seek independent financial advice before deciding to lend.
The products explained
You can withdraw your monthly repayments as they are paid back by borrowers.
You can use the monthly repayments to re-lend to new borrowers.
Guarantor my Loan provides Guarantor Loans which are a type of unsecured loan that is backed by a guarantor, usually a friend or family member, who guarantees to make the loan repayments if the borrower fails to make them.
Your returns are not guaranteed as Borrowers and /or Guarantors may not make repayments on time and in full.
Your capital is at risk. It is also not protected by the Financial Compensation Scheme (FSCS).
**The actual return may be lower than anticipated if the capital is not immediately reinvested through the term and all of the loan repayments are not made on time or in full. **
*The rate of return shown is at 30th September 2015 and is for a 3 year term, before tax and assuming reinvestment throughout the term and all of the loan repayments being made on time and in full.*
As at 31st January 2016 our default rate was less than 1% and expected default rates are 4.2%.
Past performance is not a guarantee of the future.
You may apply to access your capital early, but this may not be possible in all circumstances and you may have to pay a fee.
Guarantor My Loan is an investment and not a deposit account.
You are responsible for accounting for any income tax, corporate or personal taxes that may be payable by you to appropriate authorities.
How we mitigate the risks
All borrowers and guarantors are carefully selected by trained individuals. Robust verification, credit checks and affordability assessments are completed prior to lending your money.
Lending is split over a minimum of 20 borrowers (maximum of 5% of the investment), so if one borrower cannot pay you are less likely to receive lower returns than those anticipated or lose all of your capital.
Missed payments are pursued by competent collectors who have expertise and knowledge in managing customer accounts.
Guarantor My Loan has set up a discretionary Reserve Fund, which is held in a separate client account.
The Reserve Fund has been set up to protect lenders capital and is funded monthly to reflect the growth of the loan book and anticipated level of bad debt, which you may be able to access, although it is not a guarantee.
A reserve fund claim does not include any interest that has accrued or may accrue.
Your money is held by us in a segregated bank account until it is lent out so that it does not form part of our assets and would not be available to our creditors in the event of our insolvency.
You have a 14 day cooling – off period. You can withdraw your money anytime during the cooling–off period. You start earning interest as soon as your money is lent and the 14 day cooling off period has elapsed.
There are no fees payable by Lenders for making loans on the platform.
Guarantor My Loan will provide an annual statement to enable you to declare your income to the HMRC.
Once your money has been matched it is lent at a fixed rate for the term of the loan contract.