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