Retail platform thrives: surpasses $500m in loans

RateSetter has reached a new milestone, with everyday Australian investors like you funding over half a billion dollars in loans on our retail investment platform.

Across the 36,000+ loans funded to date, we’ve seen borrowers seek funds for almost every purpose under (or facing) the sun, from metal detectors to DJ decks and tractors. But by far, the most popular loans purposes funded by investors were those that helped borrowers do better – be it a better home, a better monthly credit card payment or a better power bill. The top four most common loans funded to date:

Loan purposeNumber of loansTotal funded
Home improvement loans9,188$96,331,518
Debt consolidation loans9,167$167,287,983
Car loans5,240$71,257,973
Renewably energy loans4,332$39,122,738

Since launching in 2014, our retail platform investors have earned over $33.5 million in interest. As of 30 June, investors were earning an average of 7.52% interest on their investments.

Weighted average annualised returns^ across lending markets

1 Month1 Year3 Year5 YearClean EnergyTotal weighted average return
3.62%4.31%7.12%8.84%6.35%7.52%

Data from November 2014 until 30 June 2019. Weighted average annualised returns based on matched rates.

We are also proud that every single one of our investors has received every amount of principal and interest due to them, thanks to our careful credit underwriting process and our prudent provisioning for any credit losses through payments made by borrowers to the Provision Fund. The Provision Fund has covered every borrower late payment and default, and the Provision Fund buffer* has still grown to over $13.9m.

Recent months have seen record investor registrations. Compared with the same month in 2018, RateSetter saw a 68 per cent increase in new investor registrations in June and a 56 per cent increase in July. Well over 50,000 customers (borrowers and investors) now use RateSetter to get more out of their money and make finance more rewarding. These milestones show RateSetter is progressing towards its goal to become Australia’s largest manager of consumer credit.

We are continuously improving and reinvigorating RateSetter’s value to its customers. We have introduced important features based on your feedback like the ‘Early Access Transfer’. We are now working hard on further modernising our investor online experience – watch this space!

^Rates are stated on an annualised basis and net of applicable fees. Lender rates may assume payments received are continually reinvested at the stated rate and assume your investment is protected by the Provision Fund in the event of any borrower late payment or default, however, there is no guarantee nor warranty as to any protection from the Provision Fund. Fees apply for using early access feature. See the Product Disclosure Statement for details.

*The Provision Fund buffer is the sum of money held in the Provision Fund and the expected Provision Fund future inflows from outstanding loans due over the lifetime of loans, adjusted to reflect expected early repayments, payment holidays and bad debt. Whilst we’re extremely proud of the Provision Fund’s 100% track record, it is not a guarantee of future performance. Capital is at risk. Read the Product Disclosure Statement for more information.

This information does not constitute financial advice and you should consider whether it is appropriate to your circumstances before you act in reliance on it. Any opinions, forecasts or recommendations reflect the judgement and assumptions of RateSetter as at the date of publication and may later change without notice.

Past performance is not a reliable indicator of future performance.

The net loss rate on all lending since inception does not reflect a fully seasoned loan book.

Figures stated above relate only to the RateSetter Lending Platform ARSN 169 500 449 unless otherwise stated.

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