Squirrel Money P2P

[Kelvin]

Thanks Kelvin. Yes, I understand that. However, as far as I am aware, the approval of borrowers is not dependent on the market interest rate. We, as investors, have no control over the credit checking process used by Squirrel. That's true for all P2P lenders I guess, but with the other companies investors are taking on the risk of individual loans. In the case of Squirrel, if they were to reduce their credit checking standards to let more potential borrowers through the gate, it could potentially affect the entire loan book. I am not saying that they would do this, just highlighting it as a potential risk.

Keep an eye on this page: https://www.squirrelmoney.co.nz/our-borrower-profiles/

Currently 80% of applications declined, and ~87% of the loan book are A or B grade.

Very frustrating today, got matched to a 5 year 8.5% loan only for the borrower to not accept it

[Saamee]

Keep an eye on this page: https://www.squirrelmoney.co.nz/our-borrower-profiles/

Currently 80% of applications declined, and ~87% of the loan book are A or B grade.

Very frustrating today, got matched to a 5 year 8.5% loan only for the borrower to not accept it

Kelvin,

I tired making my 1st loan yesterday - dialed in a 9% return and nothing got matched.

I could see other investors wanting lower rates ( 8.5% and up )

So as a 1st timer to me it looks rather like a 'Game of Chicken' crossed with a 'Dutch Auction'! Would this be correct?

[Kelvin]

Kelvin,

I tired making my 1st loan yesterday - dialed in a 9% return and nothing got matched.

I could see other investors wanting lower rates ( 8.5% and up )

So as a 1st timer to me it looks rather like a 'Game of Chicken' crossed with a 'Dutch Auction'! Would this be correct?

That's right, borrowers aren't gonna match with your funds at 9% when they could get cheaper funds at 8.5%. Lowest bidders get their funds matched first. So people who bid at 8% will get a match first, even if the loan ultimately ends up being filled at 8.5%.

I see it as working similar to selling shares

[whitt]

That's right, borrowers aren't gonna match with your funds at 9% when they could get cheaper funds at 8.5%. Lowest bidders get their funds matched first. So people who bid at 8% will get a match first, even if the loan ultimately ends up being filled at 8.5%.

I see it as working similar to selling shares

Is there a way of seeing what the spread of historic stats/rates accepted for each grade have been?
No point in me offering a rate if its way off what historically gets accepted

[Kelvin]

Is there a way of seeing what the spread of historic stats/rates accepted for each grade have been?
No point in me offering a rate if its way off what historically gets accepted

Doesn't seem to be. But right now there is only a 1% difference between lowest and highest Investor rates e.g. 8%-9% for 5 year terms, so any bids you make aren't going to be way off the historic rates. These rates remain the same for each grade.

The interest rate the borrower pays is calculated differently though - they pay the rate offered by the investor + margin for Squirrel (2% I think) + risk levy which is paid into the reserve fund. Risk levy depends on grade with Ds, Cs and Bs paying more than As

[Kelvin]

This week I've been matched with 3 loans.

8.45% for 5 years
8.50% for 5 years
8.00% for 3 years

[Kelvin]

There's a $29,250 3 year loan up for funding.

Barely any bids for the 3 year term so this should fill at the top rate (8.5%)

[Kelvin]

Just heard an ad for Squirrel Money personal loans on Spotify! Hope to see more borrowers here

[lawson]

There's a $29,250 3 year loan up for funding.

Barely any bids for the 3 year term so this should fill at the top rate (8.5%)

Thanks so much for this I switched my bid to 3 years and was able to get some money invested in to this thanks to you!

Just a quick question from a newbie - how do you see other bids. I can see mine and I can see what's in the pipeline for the various terms but I haven't figured out how I see how many bids etc. I went into the borrowing screen to see how much money is waiting for investment and thought I might have to wait sometime before getting my money invested.

I am new to p2p and am only on Squirrel because I prefer the 1.9% they set aside against future 'non-performing' loans but I did wonder does that mean the interest rate we see is gross or net?

Sorry for the dumb questions

[Kelvin]

Thanks so much for this I switched my bid to 3 years and was able to get some money invested in to this thanks to you!

Just a quick question from a newbie - how do you see other bids. I can see mine and I can see what's in the pipeline for the various terms but I haven't figured out how I see how many bids etc. I went into the borrowing screen to see how much money is waiting for investment and thought I might have to wait sometime before getting my money invested.

I am new to p2p and am only on Squirrel because I prefer the 1.9% they set aside against future 'non-performing' loans but I did wonder does that mean the interest rate we see is gross or net?

Sorry for the dumb questions

Good on you. It's a problem with Squirrel Money that a 3 year loan sits unfilled for 2 days while tens of thousands of investor funds sit unmatched waiting for 2 and 5 year loans...

You can see other bids on the Make an Investment page (in the Choose your interest rate section).

The interest rate you get is net of any platform margin and reserve fund levy, so if you match on a 9% loan, you get 9% paid to you. Just have to pay RWT on that 9%.