FAQ

General

What is "Online Marketplace Loan" ?

It’s an exciting new way for people to borrow money from other people. The people providing the funding are investors who would like to loan money to creditworthy borrowers.
Borrowers get the recognition for their good credit behaviour by getting better rates. For investors, it offers an opportunity to invest in a new, attractive asset class with stable monthly income.

How is marketplace lending different from a bank loan?

PeerPower is not a bank. Marketplace lending provides a viable alternative for creditworthy borrowers and fixed income investors to get a better deal. Part of the appeal is that PeerPower can provide better rates and returns without the infrastructure cost and complexity that comes from being a traditional bank or deposit-taking institution.

What’s the difference between variable and fixed rate loans?

PeerPower offers fixed rate business loans – which means the interest rate doesn’t change during the term of your loan so your repayments will remain the same. In addition we don’t charge early repayment fees if you want to pay off your loan earlier than you originally expected. On the other hand, variable rate personal loan interest rates may go up and down during the loan term.

What’s the difference between a secured and an unsecured loan?

Secured loans require you to deposit something of value to the lending institution and this becomes the collateral or security until the loan has been repaid. Examples of collateral include your home, a car, investments or other assets that can be sold by the bank if the loan is unpaid. Secured loans are often lower as they provide less risk to the lender.

PeerPower offers unsecured loans. That means that you don’t need to provide a deposit or security when you apply for a personal loan. At PeerPower we offer lower unsecured rates for customers with good credit as this also lowers risk for our investors.

Borrowing

Who can apply for a PeerPower business loan?

You are eligible for a PeerPower business loan if:

  • Your business is registered in Thailand (company limited or limited partnership) and has operated more than one year
  • Your business location is located in Bangkok or greater Bangkok
  • You have at least one main shareholder (>20% shares)

What is the process? How do I apply and when I will receive my loan?

  1. Apply online: Complete our online application and upload your documents.
  2. Get your loan offer: We will assess your application and get back to you with a loan offer within 3 working days.
  3. Get your money: Once you accept your offer, we’ll list your loan on our marketplace. Expect to get matched with investors within 2 weeks.

Are there any other fees and charges?

We charge a one-off admin fee, which is 3% of the loan size. There are no monthly fees or early repayment fees. So you have the security of a fixed rate loan, with the flexibility to pay it off early.

What happens if I forget my username and/or password?

If you have forgotten your username please contact customer service on 02-026-3514 and they will be able to help you.

If you have forgotten your password, go to our Login Page and click on forgotten password. You will then be emailed a temporary password and a link to proceed. To continue you will need to remember the answers to your security questions. If you do not remember the answers to your questions, please contact customer service on 02-080-3990.

Can an investor view my personal information?

PeerPower takes the privacy of its users and security of information very seriously. Investors can only view limited borrower information necessary for making an investment decision. There is no information available to investors to identify who you are. When you register with PeerPower, you may define your username. This provides anonymity to the investors who view your loan. For more information please read our Privacy Policy.

How are repayments calculated?

Repayments are calculated depending on your choice of loan terms along with the interest rate you receive on approval of your loan.

Can I choose and/or change my repayment dates?

Your loan offer will set out your direct debit repayment schedule and if you require any changes to that schedule, please contact customer service on 02-026-3514.

Can I repay my loan early? Can I make extra payments?

Yes, absolutely. PeerPower encourages responsible borrowing and provides repayment flexibility. You can either pay out your loan early or make lump sum payments during the life of your loan with no extra fees or penalty. If you wish to pay off your loan completely then please gives us a call on 02-080-3990 so that we can give you an accurate settlement quote.

Can I change my bank account/direct debit details?

Yes. To do this please contact customer service on 02-026-3514.

When can I apply for personal loan with PeerPower?

PeerPower is working towards P2P licensing with the Bank of Thailand. This is expected to be completed by the fourth quarter of this year (2018).

What do I do if I can’t make a payment?

If you are finding it difficult to make a payment, call us immediately. Whether you need short-term or medium-term assistance with your repayments, our customer service team can help. They can discuss options with you which may include flexibility with instalments due or an extension on your payment schedule.

Investing

Who can invest?

Currently, PeerPower accepts investments from Accredited Investors, these are:

  • Juristic entities with more than 40M baht in investments & deposits or 20M baht in securities
  • High-net-worth Individuals with more than 50M baht net worth or 10M baht in securities or 4M in annual income

Why can't retail clients invest now?

This is a new type of investment in the Thai market. We want to prove our systems, credit models and returns to investors and regulators before opening to retail clients.

What is the minimum investment amount?

The minimum investment is 10% of loan amount or 100,000 Thai Baht.

How do I apply to invest?

You can register to become an investor here

What if there is not enough investor demand for a loan?

Loans that do not receive enough investor demand will not be funded.

Can I diversify my investment?

Investors only receive a fractional part of each loan, so your total investment amount is allocated to smaller fractional parts of a much larger loan portfolio. This diversifies your investment across credit grades, geographies, industries etc.

How long does it take for my investments to be deployed into loans?

Once you have funded your account and signed on the Investor Service Agreement, your investment will be deployed into loans as they are listed on the platform. The time to deployment will depend on factors such as the demand for loans, the size of your investment and your investment choices.

Do I invest directly in loans?

Yes, you receive a partial interest in the loan which entitles you to receive the interest and capital repayments for the proportion of the loan you have funded.

Can I withdraw the funds in my cash account as loans are repaid?

Investors may withdraw or re-invest the funds in your cash account, though you will not be able to withdraw funds that have already been allocated to a new loan or pending repayments.

Who are the borrowers?

Borrowers are creditworthy SME businesses that meet PeerPower’s stringent credit criteria. They must have a good credit record and satisfy a number of other behavioural and loan servicing criteria.

How are loans evaluated?

PeerPower’s credit team and loan origination system assesses borrowers’ creditworthiness (A,B,C grade) using best practice credit assessment techniques. Only borrowers who meet PeerPower’s stringent requirements are listed on the platform and made available to investors.

What determines the interest rate?

Borrowers are assigned a credit grade (A, B, C or D) based on a number of credit criteria, including their credit score. The credit grade determines the minimum and maximum interest rate range within which investors can bid. Interest rates change depending on market conditions.

How do I invest?

As an investor, you can choose to invest manually by selecting individual loans yourself based on your risk profile. Or with our Automatic Investment function, you select the credit grade, term of loans, and the maximum amount you wish to invest in any one loan, and PeerPower takes care of the rest. Our allocation engine bids for loans on your behalf in accordance with your choices.

What returns will I receive?

Investors currently receive between 6% and 12% as a gross return on each loan (after deduction of PeerPower’s Service Fee and depending on the borrower’s credit grade).

Is the interest rate fixed or variable?

The interest rate is fixed for the life of the loan.

When is the capital repaid?

Loan repayments include both interest and capital. Repayments are made monthly. Borrowers can repay capital early without penalty.

How soon are repayments available for withdrawal?

Repayments are made by direct debit. Once funds are cleared, which may take up to 5 business days, investors may withdraw up to the amount in their cash account.

What happens when loans are repaid?

You may elect to leave your funds in cash, reinvest capital in further loans or withdraw your cash.

What are PeerPower's fees?

PeerPower charges investors a Service Fee of up to 1.25% of the principal repayment amount for originating and managing the loan through to repayment. The Service Fee is deducted from borrowers’ repayments and paid to PeerPower before returns are paid to investors.

Is the investment liquid?

The loans are not a liquid investment as there is currently no secondary market to sell loans. Loan investments are held for the term of the loan unless the borrower repays early (which they may do without penalty). However, loans pay a regular monthly income stream, which provides a steady cash flow.

What are the risks?

The marketplace model PeerPower uses spreads risks across many borrowers by enabling investors to take fractional parts of loans. Investors do take on the credit risk associated with each loan and any loan default may result in a partial or full loss of the investors capital investment in that loan.

What happens if a borrower defaults?

PeerPower adheres to strict credit control protocols and passes loans to a collection agency when a borrower is in default. If a borrower does not repay the loan, investors will lose their investment in that loan.