Frequently Asked Questions

How is a loan through marketplace lending different to a bank loan?

In short, a loan from a marketplace lender differs to a bank loan in the following ways:

  1. The loan is not provided by a traditional financial intermediary, like a bank or credit union. Instead investors, both retail (e.g. “mums and dads”) and wholesale (e.g. high net-wealth individuals and institutions), fund your loan through the purchase of Loan Units in the OurMoneyMarket Investment Trust, which all occurs via a marketplace on OurMoneyMarket’s online platform.
  2. Unlike the banks, marketplace lenders don’t apply a “one size fits all” approach to lending. If a borrower has demonstrated good credit behaviours they will be rewarded with a lower interest rate. Furthermore, marketplace lending allocates risk to those that are willing to take it, meaning that a lot of creditworthy borrowers who aren’t able to get a loan from a bank, perhaps due to the banks rigid credit policies, could be successfully funded through the OurMoneyMarket platform. It’s a credit where credit's due approach.
  3. We offer a seamless and paperless online loan application process. Plus, when you receive your loan we provide you with a personalised online account, so that you can track and manage your loan. We look to take the hassle out of both applying for, and managing, money.

What is marketplace lending?

It’s the new way to borrow and invest. Individuals can apply for a loan via the OurMoneyMarket website and if approved the loan request will be posted on the OurMoneyMarket website for investors to review. Investors then fund those loans through the purchase of Loan Units at their selected risk grades. The borrower will have the funds deposited into their nominated bank account and the investor will receive the contractual loan repayments made by the borrower less OurMoneyMarket’s service fee.

It’s better value for all. Creditworthy borrowers can obtain lower rates and investors gain access to a new fixed income asset class at a competitive rate of return.

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