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.
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.
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.