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05/01/2021
Sneakypeer Newsletter Week 1
Welcome to the first Sneakypeer newsletter of 2021! We look forward to safely guiding you through the risks of the Peer-to-peer industry to guarantee you a safe year of investing.
Proplend is developing a new type of loan
Proplend, a peer-to-peer lending platform that specializes in secured property lending in the UK, has published a review of 2020 on their recent blog post. The platform reveals the overall effect of the pandemic on the peer-to-peer industry, as well as shares its proactive efforts made in order to aid borrowers in times of uncertainty.
Furthermore, as a part of the platform’s objectives for 2021, Proplend anticipates launching a new type of loan this year- the VAT loan, a short-term product of 90 to 120 days. According to Proplend’s blog post, property that is purchased by an investor will simultaneously be elected for a VAT. The product is, however, still in the making, therefore more information will be published throughout 2021.
Fellow Finance expects a loan rate cap
In early 2020, at the start of the rapid spread of Covid-19 in Europe, the Finnish parliament implemented a 10 percent loan cap on all consumer loans instead of the usual 20 percent, which was intended to begin in May and end in December. This period has, however, recently been extended to the end of September 2021.
In response to the restrictions, Fellow Finance, the largest Northern European peer-to-peer platform, announced it will reimburse lost interest to investors until the end of May 2021 in order to cope with the temporary government decisions more effectively.
