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Junior Member
Originally Posted by Kelvin
But I can't seem to see the remaining term of those 2 and 5 year loans up for sale?
Ok. I emailed them. They said that this is clarified in their investor booklet on page 14. It says:
"A new investor will be automatically matched to and transferred an investment that is being sold if their investment order matches the amount and interest rate. The term remaining of the investment to be sold must be within 3 months of their requested term for 24 month and 36 month investment orders (12 months for 60 month investment orders). For example, this means a new investor with an investment order of 36 months will be automatically matched to an investment being sold with 34 months remaining. An email will be sent to a new investor to accept or decline an investment when the remaining term on an investment that is for sale is outside this tolerance."
They also said that they will be looking at displaying the term in future. Sounds good to me.
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After sending Funds to SM ( from ASB to ASB ) how long before Funds get Credited to your SM Account?
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Junior Member
Any funds sent before 12 midnight are deposited next day early morning.
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Originally Posted by AndyKiwi
Any funds sent before 12 midnight are deposited next day early morning.
Cheers AK - Just sent my first funding across!
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Junior Member
Once the money is deposited in your account, they send out an automated email to let u know.
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Member
Originally Posted by Saamee
Cheers AK - Just sent my first funding across!
Good luck. A bit of congestion right now with investor funds piling up and not many loans coming through.
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Member
Originally Posted by Kelvin
Good luck. A bit of congestion right now with investor funds piling up and not many loans coming through.
I've been with Squirrel for a while and so far pretty happy with the way things are going. I have a slight concern that if investor funds are significantly higher than approved loans, they might relax their credit approval standards to get the funds away. I'm not sure if anyone from Squirrel reads this, but if so it would be good to hear how this situation will be handled.
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Member
Originally Posted by morphs
I've been with Squirrel for a while and so far pretty happy with the way things are going. I have a slight concern that if investor funds are significantly higher than approved loans, they might relax their credit approval standards to get the funds away. I'm not sure if anyone from Squirrel reads this, but if so it would be good to hear how this situation will be handled.
The interest rates on Squirrel are determined by the market so too many investors and few borrowers means investors bid lower and rates fall to attract borrowers. Opposite happens if too few investors.
The current minimum and maximum rates for 5 year loans are 8% and 9%, perhaps these rates will be adjusted if investor funds keep building up.
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Member
Originally Posted by Kelvin
The interest rates on Squirrel are determined by the market so too many investors and few borrowers means investors bid lower and rates fall to attract borrowers. Opposite happens if too few investors.
The current minimum and maximum rates for 5 year loans are 8% and 9%, perhaps these rates will be adjusted if investor funds keep building up.
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.
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Member
Originally Posted by morphs
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
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