benaj
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Post by benaj on Aug 8, 2019 9:25:59 GMT
Does anyone know more about how these rates fluctuate?
A couple of weeks ago, the I&A rate was creeping up to 12.4+%, but now it's back to 11.4+%? What's going on? All the rates from different LOs are dropping fast.
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Post by extremis on Aug 8, 2019 14:01:43 GMT
Apparently, p2p lending business is seasonal: loan supply usually increases just before holidays as people take loans for vacations, gifts, etc. and goes down immediately after that (people are too much indebted to take new loans). Therefore, number of loans is usually high on June-July (summer vacations) and December (Christmas) driving the interest rates up as demand remains relatively stable throughout the year. On August, January-February, loan supply is usually (very) low driving interest rates down. As I&A rate is very close to average interest rate on Mintos platform, it is expected to seasonally fluctuate too. Don't worry, rates will probably go up again after summertime.
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benaj
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Post by benaj on Aug 8, 2019 16:34:59 GMT
But could someone explain why Mogo rates could go from 15% to 9.5%? while Monego & Kredo's rate go up after the cashback campaign? It seems a bit artificial.
For example:
Mogo Car loan on PM today:
Effective APR charged to borrowers 42.0%
Interest Rate 9.5%
Mogo Car loan I acquired last month:
Effective APR charged to borrowers 41.2%
Interest Rate 15.0%
Both car loans have similar APR, but different interest rate for lenders, and it's more than 5% difference in just a month!!!
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0risk
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Post by 0risk on Aug 10, 2019 13:11:18 GMT
Mogo was indeed a good example of dramatic variation. Just a couple of weeks ago they offered 16%. Now it's 12%. It's the law of supply and demand.
Also, most of my 16% loans was soon rebought by Mogo.
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Post by littleinvestor on Aug 13, 2019 20:11:34 GMT
I also traded most of my Mogo 10% loans for 16%, mostly Romanian..to then see them being bought back in a zip and put online again at 14%.
I guess their Romanian business is new and they are still adjusting. The 10-12% loans are rather stable I must say and my preferred.
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benaj
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Post by benaj on Aug 14, 2019 7:10:21 GMT
Same here, my higher rates Mogo loans are being bought back.  |
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benaj
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Post by benaj on Sept 27, 2019 8:40:26 GMT
Some LO have big swing in their rates, some changes like dropping 5% within a week.
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