Rate Review 2019 – New rates & 18-month loans

We're making some changes to the interest rates and repayment terms available on Linked Finance, here's what you need to know...

We’re making some changes to the interest rates and repayment terms available on Linked Finance, here’s what you need to know…

We recently completed an extensive review of interest rates across all loan grades and repayment terms.

We analysed our existing rates looking at the net average returns being delivered, the demand from lenders in each category and the overall competitiveness of these rates in the market for borrowers.

It has been 2 years since we last reviewed the rates offered on the platform and market conditions have changed significantly since then. 

Demand from lenders is higher than ever before and the SME lending space has grown increasingly competitive.

To ensure that we can continue to attract a high volume of high-calibre businesses to the platform, it’s important that our rates are competitive. 

At the same time, we want to ensure that we can continue to deliver attractive returns to our lenders with the low default rates you have come to expect.

With this in mind we will be making some changes to the rates offered on the platform. These changes will take effect from October 2nd 2019.

New Rates

6 Months6.00%6.75%8.25%9.95%12.00%15.00%
12 Months6.25%7.25%8.50%10.95%12.50%15.00%
18 Months6.50%7.50%8.95%10.95%13.00%16.00%
24 Months6.75%7.75%9.50%11.95%13.50%16.00%
36 Months6.95%7.95%9.95%11.95%15.00%17.50%

What’s Changing

6 Months0.00%-0.25%-0.25%-0.05%0.00%0.00%
12 Months-0.25%-0.25%-0.50%-0.05%0.00%0.00%
24 Months-0.25%-0.25%-0.50%-0.05%0.00%0.00%
36 Months-0.55%-0.55%-0.55%-0.55%0.50%0.00%

As you can see rates will reduce slightly in many categories, they will remain unchanged in some and increase in one. 

These slight adjustments are geared toward ensuring Linked Finance remains competitive in the market while continuing to offer attractive net returns to our lenders. 

Existing Autobids will continue to be placed when the new rates come into play on October 2nd. If you would like to adjust your Autobids in light of the new rates, you should do so before the change over.

18-Month Loans
You will also note that we are introducing a new 18-month repayment term across all loan grades as we look to support businesses through Brexit and onwards. There will be no Autobids pre-populated for this category. If you wish to participate in these loans you will need to log in and set-up your Autobids. 

Ultimately, we believe these changes will help us to ensure that Linked Finance maintains its position as Ireland’s leading P2P lending platform; helping us to attract more borrowers while continuing to deliver the same strong returns for our lenders.

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