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Post by justuslee on Jul 2, 2018 10:39:55 GMT
The Guarantor Loan provider Amigo Loans has just listed on the LSE with a Market cap of £1.3 BN.
JustUs' most popular loan product is the JustUs Guarantor Loan at a borrower rate of 28% p.a. paying lenders 10% interest p.a. - The lower JustUs interest rate beats Amigo Loans borrower rates of 42% by 14% p.a. !!! and saves the borrower £2,000 in interest on an average £5,000 Loan.
Great yield, highly liquid and all loans backed up by an A1 profiled homeowner.
Amigo have 180,000 borrowers at 42%, help us save £360,000,000 in interest by letting them pay 28%. You can also lend tax-free via the JustUs ISA.
New lenders very welcome.
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puddleduck
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Post by puddleduck on Jul 2, 2018 11:05:20 GMT
Lending at either 42% or 28% to people who can ill afford it (hence needing guarantors) is immoral IMHO.
No doubt this won't be a popular view, but I will not be a party to exploitation for vulnerable people.
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agent69
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Post by agent69 on Jul 2, 2018 11:09:02 GMT
JustUs' most popular loan product is the JustUs Guarantor Loan at a borrower rate of 28% p.a. paying lenders 10% interest p.a. Dare I ask where the other 18% goes (provision fund perhaps?)
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Post by justuslee on Jul 2, 2018 11:13:17 GMT
Hi Puddelduck, I am sorry you feel this way.
It's important to appreciate that the charitable credit unions not-for profit borrower rate is 36%.. the costs to process and administer the collection of payments from these borrower profiles needs to be paid for somehow, and JustUs can do it more cost effectively than anyone else due to no branches etc.
The bigger the crowd the lower the rate we can offer, why not join the JustUs crowd and help drive down this rate even further.
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Post by justuslee on Jul 2, 2018 11:15:29 GMT
JustUs' most popular loan product is the JustUs Guarantor Loan at a borrower rate of 28% p.a. paying lenders 10% interest p.a. Dare I ask where the other 18% goes (provision fund perhaps?)
Hi Agent 69, it costs approximately 10% to originate the loan day 1, then the ongoing costs are the platform margins, average loan size 5K. The home-owning/good credit profile Personal Guarantor is the security behind these borrowers in the event of non-payment.
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bigfoot12
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Post by bigfoot12 on Jul 2, 2018 12:07:02 GMT
... The home-owning/good credit profile Personal Guarantor is the security behind these borrowers in the event of non-payment. Something I've wondered for a few years since I first heard Amigo advertise on the Radio, is why does the guarantor agree to this? Why doesn't (s)he use his good credit to borrow at 6% (or whatever) and lend this on directly?
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macq
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Post by macq on Jul 2, 2018 12:16:56 GMT
... The home-owning/good credit profile Personal Guarantor is the security behind these borrowers in the event of non-payment. Something I've wondered for a few years since I first heard Amigo advertise on the Radio, is why does the guarantor agree to this? Why doesn't (s)he use his good credit to borrow at 6% (or whatever) and lend this on directly? For any children reading - please do not try this at home
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Post by justuslee on Jul 2, 2018 12:18:42 GMT
Good question bigfoot12 - A well conducted guarantor loan improves the borrowers credit history, and as you would expect from these types of borrowers, many have experienced a few credit blips in the past. So in many instances this can be deemed a credit history repair loan. We settle expensive credit directly and pay any proceeds directly to the Personal Guarantor so they are completely aware of the financial contractual relationship between all parties.
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registerme
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Post by registerme on Jul 2, 2018 12:25:27 GMT
justuslee is there any relationship between Amigo Loans and JustUs?
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Post by justuslee on Jul 2, 2018 12:57:18 GMT
Hi registerme, none whatsoever. I just saw the growth a few years ago and with the crowds support saw an opportunity to provide a disruptive lower cost alternative. If you look at wisealpha.com you will see that Amigo Bonds are available and pay approx 7% to the crowd, so we pay more to savers and charge less to borrowers, it's a win-win.
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sqh
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Post by sqh on Jul 2, 2018 13:05:44 GMT
The Guarantor Loan provider Amigo Loans has just listed on the LSE with a Market cap of £1.3 BN. JustUs' most popular loan product is the JustUs Guarantor Loan at a borrower rate of 28% p.a. paying lenders 10% interest p.a. - The lower JustUs interest rate beats Amigo Loans borrower rates of 42% by 14% p.a. !!! and saves the borrower £2,000 in interest on an average £5,000 Loan. Great yield, highly liquid and all loans backed up by an A1 profiled homeowner. Amigo have 180,000 borrowers at 42%, help us save £360,000,000 in interest by letting them pay 28%. You can also lend tax-free via the JustUs ISA. New lenders very welcome. justuslee, I have a target set for Guarantor Loans at 10%, but they are quite rare these days. Please can you say how many you have issued in the last 3 months and the total amount?
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Post by justuslee on Jul 2, 2018 13:11:17 GMT
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cb25
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Post by cb25 on Jul 2, 2018 14:03:22 GMT
The Guarantor Loan provider Amigo Loans has just listed on the LSE with a Market cap of £1.3 BN. JustUs' most popular loan product is the JustUs Guarantor Loan at a borrower rate of 28% p.a. paying lenders 10% interest p.a. - The lower JustUs interest rate beats Amigo Loans borrower rates of 42% by 14% p.a. !!! and saves the borrower £2,000 in interest on an average £5,000 Loan. Great yield, highly liquid and all loans backed up by an A1 profiled homeowner. Amigo have 180,000 borrowers at 42%, help us save £360,000,000 in interest by letting them pay 28%. You can also lend tax-free via the JustUs ISA. New lenders very welcome. People might view an "A1 profiled homeowner" as being the most creditworthy type of homeowner available. But, if that were true, they wouldn't need to pay 28%. Whose definition of "A1" are you using (other than your own which tells me nothing) ?
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agent69
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Post by agent69 on Jul 2, 2018 15:00:34 GMT
... The home-owning/good credit profile Personal Guarantor is the security behind these borrowers in the event of non-payment. Something I've wondered for a few years since I first heard Amigo advertise on the Radio, is why does the guarantor agree to this?
I've often wondered this myself
>40% interest rate on a secured loan? Why doesn't the guarantor borrow the money at single figures and then pass it on?
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Post by justuslee on Jul 2, 2018 15:51:56 GMT
The Guarantor Loan provider Amigo Loans has just listed on the LSE with a Market cap of £1.3 BN. JustUs' most popular loan product is the JustUs Guarantor Loan at a borrower rate of 28% p.a. paying lenders 10% interest p.a. - The lower JustUs interest rate beats Amigo Loans borrower rates of 42% by 14% p.a. !!! and saves the borrower £2,000 in interest on an average £5,000 Loan. Great yield, highly liquid and all loans backed up by an A1 profiled homeowner. Amigo have 180,000 borrowers at 42%, help us save £360,000,000 in interest by letting them pay 28%. You can also lend tax-free via the JustUs ISA. New lenders very welcome. People might view an "A1 profiled homeowner" as being the most creditworthy type of homeowner available. But, if that were true, they wouldn't need to pay 28%. Whose definition of "A1" are you using (other than your own which tells me nothing) ?
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