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Post by guggaburggi on Feb 24, 2017 10:07:20 GMT
I found these loans in case of Banknote quite silly. They offer pawnbroking loans with 9% interest rate and these loans have collateral in them.
LTV is up to 95%. However, the thing is that these loans already have buyback guarantee on them. So, only occurrence when collateral is needed, in investor's perspective, is when Banknote goes bankrupt. AND in that case, investors doesn't have a direct claim to the collateral anyways, only to Banknote.
So what's the point?
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Post by mopcku on Feb 24, 2017 16:35:11 GMT
I found these loans in case of Banknote quite silly. They offer pawnbroking loans with 9% interest rate and these loans have collateral in them. LTV is up to 95%. However, the thing is that these loans already have buyback guarantee on them. So, only occurrence when collateral is needed, in investor's perspective, is when Banknote goes bankrupt. AND in that case, investors doesn't have a direct claim to the collateral anyways, only to Banknote. So what's the point? Probably only indirect good for you since collateral reduces the loses for Banknote and thus the probability they default and being unable to pay your guarantee
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jimc99
Member of DD Central
Posts: 284
Likes: 115
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Post by jimc99 on Mar 26, 2017 2:08:48 GMT
I created an auto invest to put money into the pawnbroking loans. This was yesterday. When I clicked the activate button it said €220 had been invested.
Looking at my individual investments a bit later only €20 was a pawnbroking loan and the other €200 was in Georgian personal loans!
Anyone else had this happen?
Not 100% sure I did the auto invest correctly.
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Sr. Lobo
Member of DD Central
Posts: 63
Likes: 17
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Post by Sr. Lobo on Mar 26, 2017 7:07:59 GMT
I created an auto invest to put money into the pawnbroking loans. This was yesterday. When I clicked the activate button it said €220 had been invested. Looking at my individual investments a bit later only €20 was a pawnbroking loan and the other €200 was in Georgian personal loans! Anyone else had this happen? Not 100% sure I did the auto invest correctly. I'm sure you didn't . Select the loan type, that loan originator offers both kind of loans. Take care of buyback guaranty as there are both with similar interest rates. HTH
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