What Do We Do To De-risk Your Investments?
We do extensive checks on our borrowers to verify their creditworthiness before issuing any loans. Firstly, we carry out background checks like identity, fraud and anti-money laundering (AML). Once cleared, applicants are credit scored and their affordability is checked to determine their creditworthiness which is the final stage to determine if a borrower is approved or rejected.
Dealing with defaults
Our credit assessment and affordability checks allow us to gain prediction of the borrowers’ likelihood of defaulting. We aim to achieve our target average default rate of 15% by being selective of who we accept as a borrower on our platform.
In the event we see our average default rate going higher than our target average default rate, we may close the lending door to riskier borrowers by tightening our credit assessment and affordability criteria.
If a borrower fails to repay the instalment within 35 days of it becoming due, we will report the non-payment to the credit reference agency. Thereafter, our collections teams and external recovery provider commence the process to recover the amount outstanding.
The provision fund we offer does not give you a right to a payment so you may not receive a pay-out even if you suffer loss. The fund has absolute discretion as to the amount that may be paid, including making no payment at all. Therefore, investors should not rely on possible pay-outs from the provision fund when considering whether or how much to invest.
For an additional layer of stability, we created the Provision Fund which aims to cover investments of our peer-to-peer investors. It does not cover any other current of future lending products we may offer.
Borrowers who take out a loan from Fund Ourselves Platform pay interest on the money that they have borrowed. Part of the interest goes to the investor; part covers the operational fee of our P2P platform, and a part goes into the Provision Fund. Funds in the Provision Fund are segregated funds which aims to reimburse the principal amount lost to the investors in the event the borrower fails to meet their repayments. The Provision Fund changes along with the portfolio size and repayments made by borrowers
In the event where the Provision Fund was not able to pay you back for your loss, any funds bad debt collected by the internal collections team is transferred to you.
The Provision Fund is a buffer to protect your investment which is not a guarantee; however, it aims to reimburse all our lenders for their principal losses subject to fund availability. Your capital and interest are at risk if the Provision Fund is depleted by increased borrower defaults. Please see our Provision Fund policy here
for further details.
Provision Fund Performance
Table for actual funds (segregated funds kept aside) by quarter.Please note that Past performances and our forecast of borrower risk rate might not be a reliable indicator of future results.