|
Post by flanem on Nov 21, 2015 10:59:20 GMT
I read: "To decrease the risk, TWINO recommends you to split your investment into several loans." But if "TWINO will buy back loan from investor (principal amount and interest for the investment period), if it is 30 or more days delinquent." What more risk can there be?
I have opend user-agreement-stream.pdf, but i'm not able to find "buy back" rule? where is the relative paragraph?
|
|
Rob
Posts: 138
Likes: 36
|
Post by Rob on Nov 22, 2015 9:20:15 GMT
I read: "To decrease the risk, TWINO recommends you to split your investment into several loans." But if "TWINO will buy back loan from investor (principal amount and interest for the investment period), if it is 30 or more days delinquent." What more risk can there be? I have opend user-agreement-stream.pdf, but i'm not able to find "buy back" rule? where is the relative paragraph? The Buy Back promise is (now) in the Assignment Agreement - sample at the bottom of this page: www.twino.eu/app/#/available-investment-loansSee item 6. I have found that if an investor pays back the loan in full before the first due payment date, you get no interest, so this is a risk. I avoid borrowers with very high income.
|
|
shimself
Member of DD Central
Posts: 2,560
Likes: 1,169
|
Post by shimself on Nov 22, 2015 14:35:56 GMT
I read: "To decrease the risk, TWINO recommends you to split your investment into several loans." But if "TWINO will buy back loan from investor (principal amount and interest for the investment period), if it is 30 or more days delinquent." What more risk can there be? I have opend user-agreement-stream.pdf, but i'm not able to find "buy back" rule? where is the relative paragraph? If Twino were to go bust (fingers xed) then the borrower still owes you and I hope there would be a company running down the loan book for a fee - but if if if then I still suspect that this company would be unlikely to be too bothered with a borrower who tried it on. So it does make sense even so.
|
|
JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,317
Likes: 893
|
Post by JamesFrance on Nov 22, 2015 16:30:19 GMT
I have found that if an investor pays back the loan in full before the first due payment date, you get no interest, so this is a risk. I avoid borrowers with very high income. Rob did you check this from your list of loans? All mine seem to have some interest even one with only 2 cents. I think that sometimes they don't post the interest at the same time as the repayment so it can seem to be missing from your transaction list.
|
|
|
Post by reeknralf on Nov 22, 2015 18:27:24 GMT
I had a loan repaid the same day as it was taken out, and still got a day's interest.
I agree with OP, that there is very little benefit in diversifying, but to smooth daily repayments, it's preferable to have many smaller loans. Otherwise you might get 10% of your portfolio dumped on you when there's nothing to reinvest in.
TWINO also say that shorter term loans are less risky, which I'd ordinarily agree with, but given the way the buy back operates, I see no benefit.
|
|
Rob
Posts: 138
Likes: 36
|
Post by Rob on Nov 23, 2015 9:02:53 GMT
I have found that if an investor pays back the loan in full before the first due payment date, you get no interest, so this is a risk. I avoid borrowers with very high income. Rob did you check this from your list of loans? All mine seem to have some interest even one with only 2 cents. I think that sometimes they don't post the interest at the same time as the repayment so it can seem to be missing from your transaction list. JamesFrance Yes, I have checked. Example: 03-66216 Bought €91.11 on 23/10/2015 Early Full Repayment on 16/11/2015 Only €91.11 principal paid Update 02/12/2015I currently have 3 loans which were repaid early 1-2 weeks ago for which I received no interest. Having e-mailed Twino, I got the following reply: "We have informed the relative parties about these repayments and currently the corrections are in progress. It is sometimes possible that you first receive only the principal amount in case of an Early Full Repayment if the borrower has not paid the interest, however, even if TWINO does not receive the interest for some of the loans, the interest is still transferred to the investors. Unfortunately, since the interest payments are distributed to investors manually, it may take a longer while for this process. We kindly ask for your patience and understanding."Still waiting for payment! Update 17/12/2015After waiting another 2 weeks and having no interest paid, I e-mailed Jevgenijs. The interest was then paid immediately. The moral of the story, keep an eye on My Investments page and look out for zero interest on Repaid loans!
|
|
|
Post by gusgorilla on Jan 15, 2016 1:01:27 GMT
I had a loan repaid the same day as it was taken out, and still got a day's interest. I agree with OP, that there is very little benefit in diversifying, but to smooth daily repayments, it's preferable to have many smaller loans. Otherwise you might get 10% of your portfolio dumped on you when there's nothing to reinvest in. TWINO also say that shorter term loans are less risky, which I'd ordinarily agree with, but given the way the buy back operates, I see no benefit. There would seem to be no benefit, but have we established yet that TWINO will be able to honour the buy back commitment and stay in business? I cannot help feeling wary of a company that employs a CEO who has worked for Bond ora, who look like they will not survive due to lack of investor trust. I like the look of TWINO but will be exercising great caution until it proves it is truthful, financially robust and competent, rather than just good at short term marketing. If this company has integrity I think it could be a great success but Isn't it too early to judge?
|
|
Rob
Posts: 138
Likes: 36
|
Post by Rob on Jan 15, 2016 7:55:17 GMT
... have we established yet that TWINO will be able to honour the buy back commitment and stay in business? I cannot help feeling wary of a company that employs a CEO who has worked for Bond ora, who look like they will not survive due to lack of investor trust. I like the look of TWINO but will be exercising great caution until it proves it is truthful, financially robust and competent, rather than just good at short term marketing. If this company has integrity I think it could be a great success but Isn't it too early to judge? The borrowers pay hundreds of percent for these pay-day loans, so there is plenty of money in the pot to pay the lenders a maximum of 14.9% on the small percentage (around 15%?) that default and stay in business. We don't know exactly why Jevgenijs left Bondora, but perhaps it is because he was being forced to put up a front for them that he didn't agree with. Twino's parent company is Finabay which has been around since 2009, so I think it is financially robust. www.twino.eu/about.html
|
|
|
Post by gusgorilla on Jan 15, 2016 11:27:57 GMT
Yes I guess as long as they have lots of the pay day loans our slice including buyback will be a small proportion. Things look rosy for now and I guess that the only real threats are regulation or competition forcing down rates for borrowing. I will be investing more here but sticking with short term loans. Liquidity and reasonable rates together are a winner for my current needs.
|
|