Asked on 27 Jun 2019
It depends on the platform. I have been with Funding Societies and default rate is about 1 to 3 per cent. Note that its higher with Moolahsense. One telling sign is that loans from moolahsense come with a higher interest rate. This is to compensate for the riskier loans on the platform.
Hello! I’m Jin Wen from CoAssets Pte Ltd (“CoAssets”) and would love to give my two cents :)
Understanding Default Risk In accordance to Monetary Authority of Singapore (MAS), a non-performing loan (I.e. loan default) occurs when a repayment remains unpaid at least 30 days past the due date. Source: https://www.mas.gov.sg/-/media/MAS/Regulations-and-Financial-Stability/Regulations-Guidance-and-Licensing/Securities-Futures-and-Fund-Management/Regulations-Guidance-and-Licensing/Circulars/CMI-27-2018-Controls-and-Disclosures-to-be-Implemented-by-Licensed-Securities-Based-Crowdfunding-Operators.pdf Default Risk and CoAssets
As per MAS calculation, CoAssets Pte. Ltd. has achieved a default rate of 0% for 2018. You may refer to our statistics here: https://coassets.com/asx/about/ ( Visit “Statistic” tab under “About Us” section).
Having said that, past performance is not an indicator of any future performance as P2P lending is high risk after all and default is always possible. Overall, every investment comes with their own set of risks. It is advisable that investors must do their own due diligence to determine if the products match their investment objectives and risk appetite. Hope this helps!
Show More Products