Online social lending

I have been looking for something like this to get try out for a while... most of the other sites have unfortunately all been foreign only, like prosper.com.

I think you can definitely make some nice returns.. depending on the default rate ofcourse. Will check it out!
 
Having worked in the microlending game, I figure this is a set of disasters waiting to happen. The risks are extremely high, and the BIGGEST, MOST IMPORTANT factor in the game is collecting payments. This involves keeping in frequent contact with the client or borrower, and making sure they have a strong sense that you know how to get hold of them. This sort of thing will keep me WELL away:

1 Month Past Due: loan sent to collections agency for collection

* You will be charged a late payment fee of R50
* Your loan will be sent to the AngelMoola collection agency partner.
Click to expand...

And who are they? Are they any good? Or are they a useless bunch of f***wits like MBD?

So they have a thrilling "Credit Guarantee" scheme costing 15% of your portfolio. So your STARTING, ZERO interest rate is 15%. And then you are quaranteed to only 50%. Now is that 50% of what you loaned ( probably ) or 50% of your loan plus cost-of-capital?

Then this charmer:

We do not restrict people on the basis of income or credit history - but note that this will most likely influence the rate at which people are prepared to lend to you!.
Click to expand...

Now, in terms of the NCA, you HAVE to take AFFORDABILITY into account, and that implies INCOME ( if the borrower has capital why would he need a loan ? ). If you do not verify affordability, the borrower does not have to pay you back.

Sure, some people will make a few $$, but there will be many long faces in time.
 
The host name angelmoola.co.za seems unknown.
...
Perharps somebody can suggest an alternative DNS server to me, seems the ones Voda GPRS use are not updated yet.
 
My question is just this, how will angelmoola ensure that I get my money back with the interest? Sounds a bit dodgy to me, heaven for scammers.
 
You are getting higher returns than you would in a bank savings account. This margin is to compensate you for the higher risk. The system seems to work overseas I'm not sure if the SA investor public is ready for this type of product as can be seen from the comments above.
 
If nothing else, this is pretty interesting. I'm not sure how the risk will be rated, but as the blurb says... you can diversify to minimise your risk.
As far as borrowers are concerned, two things can (and probably will) happen:
1. People with poor credit histories who are unable to get traditional financing from banks will try to get finance (high risk - high interest).
2. People who are tired of being shafted by banks will try to get better interest rates (low risk - low interest).
The success of the scheme rests on the balance between the two.
 
This is not a new idea - I saw this a few years back where the lender will use the money to create a small business or enterprise.

I am just glad that it pop up here - I'll hopefully be one of the first to become an investor.
 
OK - looks like they removed the login page today. Created an account last night but now I cannot login. Also want to invest a bit here - safer than stock exchange right now ...

... actually loaning money to a bergie is safer than the stock exchange.
 
cbrunsdonza said:
OK - looks like they removed the login page today. Created an account last night but now I cannot login. Also want to invest a bit here - safer than stock exchange right now ...

... actually loaning money to a bergie is safer than the stock exchange.
Click to expand...

Things are a bit slow for Angel Moola, try this https://www.angelmoola.co.za/site/html/login

It took me two days to finally log in, and there are no listings as of yet, perhaps you can be the first one to invest and lend me R60k @ 16% intererst:D
 
rwenzori said:
I figure this is a set of disasters waiting to happen.
Click to expand...
+1

The people who will turn to this informal system are likely to be those rejected by the "real" banks as too risky.

Not even the banks with their PHD crews can evaluate credit risks correctly...and now people who can't file their own tax return are trying to do that job.:confused:

The interest rate demanded should not be based on what the lender is willing to accept in general, but rather on the risk inherent in a specific borrower's ability to repay.

They have a credit risk guarantee...but it only covers half of the loan and they charge. Oh, and they charge 15% for that half guarantee.:rolleyes:

I'm also curious how the hell these clowns think they can comply with the NCA. The lender is required to verify the borrowers ability to repay. I don't think a IRC/mxit chat qualifies as verification.

Sounds like a dot-bomb to me.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X