Is this correct?

swift

Posts: 33

Likes: 3

Is this correct? May 3, 2016 13:08:26 GMT

Quote

Post by swift on May 3, 2016 13:08:26 GMT

I took part in loan 7638 with 10.00 euro and I'm not sure I understand what happened. I got the following transactions for this loan:

* -10.00 initial investment, 12%, 1 month
* +10.00 principle repayment
* +0.02 interest payment
* +0.01 late payment fee

I expected 12%/12 months=1% of interest on this loan, hence 0.10 euro. So far I have received 0.02 euro of interest payments and 1 cent late fee.

And now, this loan's detail page is 404'ed and thus I have to conclude that this loan is closed as far as Viventor is concerned. How can this be? I think a lendee can repay the loan early and pay lower interest, correct? Even if so, the late payment indicates there was no early repayment...

ben Posts: 2,020 Likes: 589	Is this correct? May 3, 2016 13:21:27 GMT toms viventor likes this Quote Select Post Deselect Post Link to Post Back to Top Post by ben on May 3, 2016 13:21:27 GMT how long were you in the loan for ?

toms viventor Representative of Viventor Posts: 74 Likes: 10	Is this correct? May 3, 2016 17:39:44 GMT Quote Select Post Deselect Post Link to Post Back to Top Post by toms viventor on May 3, 2016 17:39:44 GMT swift, as ben is correctly pointing out - the moment when you entered in the loan matters. A very simple example: if you held a loan part generating 12% annual interest for 10 days, the return will be 12% x 10/365.

swift

Posts: 33

Likes: 3

Is this correct? May 3, 2016 20:56:44 GMT

Quote

Post by swift on May 3, 2016 20:56:44 GMT

I see. So how would that work if I sell a loan on the second market? Do I get a partial interest payout even before the day of scheduled payment?

I had the loan from 25-Apr-16 til 02-May-16. That's 8 days.

8/365 * 12% * 10.00 = 0.0263 euro.

Your platform works with 2 digits instead of 4 which I may add is the financial industry's standard for these small amounts. Just go to any decent stock sites and look at a stock below 1. It will be noted with more than 2 digits. 0.0263 euro should round to 0.03, and I got 0.02. Unless it's not 8 days but 7 days + 1 day for updating the book. In that case it would be 0.0230 euros which rounds to 0.02. How is this done on Viventor? How can I be assured the calculation is correct?

Last Edit: May 3, 2016 21:05:59 GMT by swift

toms viventor
Representative of Viventor

Posts: 74

Likes: 10

Is this correct? May 4, 2016 16:51:27 GMT

Quote

Post by toms viventor on May 4, 2016 16:51:27 GMT

If you sell the loan on the Secondary Market, you receive the part of interest for the period of days you held the investment. The interest is paid, when a borrower repayment is received.

We also work with more than 2 digits behind the coma, and the computations in our back-end go up to 9 digits behind coma. Unfortunately, we cannot provide you access to our back-end system so that you can verify this for yourself.

Toms

toms viventor Representative of Viventor Posts: 74 Likes: 10	Is this correct? May 5, 2016 16:38:19 GMT Quote Select Post Deselect Post Link to Post Back to Top Post by toms viventor on May 5, 2016 16:38:19 GMT swift, you can now see the repaid loans.

swift Posts: 33 Likes: 3	Is this correct? May 5, 2016 21:23:16 GMT Quote Select Post Deselect Post Link to Post Back to Top Post by swift on May 5, 2016 21:23:16 GMT Good stuff Toms!

Post by swift on May 3, 2016 13:08:26 GMT

Post by ben on May 3, 2016 13:21:27 GMT

Post by toms viventor on May 3, 2016 17:39:44 GMT

Post by swift on May 3, 2016 20:56:44 GMT

Post by toms viventor on May 4, 2016 16:51:27 GMT

Post by toms viventor on May 5, 2016 16:38:19 GMT

Post by swift on May 5, 2016 21:23:16 GMT