FAQ

General

What is marketplace lending?

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 fixed income asset class.

How are you different from other lenders?

PeerPower looks for creditworthy, quality borrowers who typically have existing banking relationships. We think borrowers with good track records are not getting the best rate that they deserve and we aim to offer an alternative that is Smarter, Faster, Better.

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 unsecured 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 unsecured 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 against the loan in case of default. At PeerPower we offer lower unsecured rates for customers with good credit as this also lowers risk for our investors.

Borrowing

When can I apply for a 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 (2560).

Register your interest today to stay updated.

Who can apply for a PeerPower loan?

You are eligible for a PeerPower loan if you:

  • You are a Thai citizen
  • You are at least 20 years old
  • Your monthly income is more than THB 20,000
  • You are able to afford the loan
  • You have at least 1 year of good credit history on the Credit Bureau
  • You are not in Hardship with any other financial provider
  • You do not have a pending, current or previous bankruptcy

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

  1. Apply online – 10 mins: Complete our easy online application.
  2. Get your loan offer – Maximum 72 hrs: We will assess your application and get back to you with a loan offer.
  3. Get your money – Minimum 48 hrs: Once you accept your offer, we’ll finalise the loan and transfer your money.

Are there any other fees and charges?

We charge a one-off admin fee. This is included in your total loan amount. 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 02-050-4636 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 02-050-4636.

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 do I make repayments?

Repayments can be made in monthly installments, by direct debit. If you wish to make extra payments, please contact our customer service team on 02-050-4636. There are no fees or penalties for making extra payments or paying off your loan early. If you are experiencing financial hardship and are having difficulty repaying your loan please call customer service on 02-050-4636.

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 02-050-4636.

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 02-050-4636 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 02-050-4636.

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

If you are finding it difficult to make a payment, call us immediately on 02-050-4636. 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, an extension of time to pay or, if your circumstances warrant it, discussing hardship options.

Investing

Who can invest?

Currently, PeerPower accepts investments from High Net Worth Individuals (HNWIs); defined as an individual with

  • Net worth of 50 million baht or more
  • Annual income of 4 million or more
  • Investments in securities of 10 million baht or more

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 will be reviewed on a case-by-case basis.

How do I apply to invest?

Register your interest in investing with us.

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?

Yes, you may withdraw 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.

Where is my cash held?

All cash is held in a Custodian Account for safekeeping of investors’ funds, and in the unlikely event of receivership of the marketplace lender, will disburse available funds back to investors.

Who are the borrowers?

Borrowers are creditworthy individuals or SME businesses that meet PeerPower’s stringent credit criteria. They must have a good credit record, be over 20 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 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 (AA, 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 6-12% as a net 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?

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

How frequently are loan repayments made?

Monthly, as determined by the borrowers loan contract.

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?

Borrowers pay an admin fee of 3% to 4% (depending on their loan terms) if the loan application is successful and fully funded. This fee is payable by Borrowers upon receipt of their loan amount.

PeerPower charges investors a Service Fee of up to 1.5% 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 investor information memorandum outlines the full risks associated with personal loans. 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.