benaj
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Post by benaj on Dec 4, 2018 9:15:04 GMT
Hi, just wondering if anyone notice the increase of the interest of latest Welendus loans?
My current longest live loans is 120 days, the loan term is 179 days and the borrowers rate is 0.22% per day. The latest new loans ranges from 0.66% to 0.8% per day, that's an increase of at 200%, but no reflection of lender investment rate.
What's your thought?
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nyneil
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Post by nyneil on Dec 4, 2018 13:43:33 GMT
Hi, just wondering if anyone notice the increase of the interest of latest Welendus loans? My current longest live loans is 120 days, the loan term is 179 days and the borrowers rate is 0.22% per day. The latest new loans ranges from 0.66% to 0.8% per day, that's an increase of at 200%, but no reflection of lender investment rate. What's your thought? At the same time, the default rate has increased and the PF % has fallen, so maybe this is an attempt to balance the books.
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dandy
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Post by dandy on Dec 4, 2018 14:12:02 GMT
Hi, just wondering if anyone notice the increase of the interest of latest Welendus loans? My current longest live loans is 120 days, the loan term is 179 days and the borrowers rate is 0.22% per day. The latest new loans ranges from 0.66% to 0.8% per day, that's an increase of at 200%, but no reflection of lender investment rate. What's your thought? The maximum any borrower can pay is capped at 0.8% per day and/or a total of 100% of the amount borrowed (to inc all fees/charges/interest etc) - so if a borrower gets £500 the max they would ever have to repay is £1,000. So the effect of increasing daily rates is simply the speed at which the 100% cap is reached - and the quickest is 125 days @ 0.8% per day. If the rates are being dramatically increased to match the risk then I think there is a fundamental flaw here as a) "good" borrowers will typically repay well before 100% cap is reached b) bad borrower wont ever pay anything regardless of when 100% is reached. Seems like more reliable borrowers are needed as opposed to spiking rates to make this model work. Whilst I understand the rationale that pay day loans are at least better than loan sharks it is still a bit too ursury like for me. I wouldn't want anyone to pay me such rates, especially those can least afford it.
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benaj
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Post by benaj on Dec 4, 2018 14:43:57 GMT
I've just looked into the loan summary, compared the completed loans originated from June to November. It seems loans completed loans originated from 3 months ago or more have shorter loan term (i.e. less than 100 days on average, some was on 44 days loan term, but those borrowers didn't intend to repay loan early . May be Welendus now offer longer loan term with higher rates and expecting "good" borrowers to repay much earlier than agreed loan terms, for example repay within 20 days instead of 120 days.
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Post by nesako on Dec 6, 2018 11:10:55 GMT
Talking about the PF, it is quite a shame that statistics are not available until you register, so I did register and can now see that PF coverage is 95.9% (loans over 30d late). This is way below my comfort level for unsecured lending, but I will be keeping an eye on it to see whether it will improve by the next ISA season.
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markyg61
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Post by markyg61 on Dec 6, 2018 14:03:57 GMT
Talking about the PF, it is quite a shame that statistics are not available until you register, so I did register and can now see that PF coverage is 95.9% (loans over 30d late). This is way below my comfort level for unsecured lending, but I will be keeping an eye on it to see whether it will improve by the next ISA season. The Provision Fund Coverage does appears to change frequently eg. 2 hrs after you posted and its now showing 100.9%
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elliotn
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Post by elliotn on Dec 6, 2018 14:40:32 GMT
Talking about the PF, it is quite a shame that statistics are not available until you register, so I did register and can now see that PF coverage is 95.9% (loans over 30d late). This is way below my comfort level for unsecured lending, but I will be keeping an eye on it to see whether it will improve by the next ISA season. One thing to bear in mind is this improves significantly by the time you these default at 90D ie majority of 30D late loans still repaying. They stress test for 10% actual default and tweak their lending parameters to stay on target.
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