FAQ

General
About Borrowers
Investment Details
Risk management
PeerPower focuses on Accredited Investors which the Securities and Exchange Commission (SEC) defines as:

1. Institutional investors such as commercial banks, mutual funds, private funds and public companies; and
2. High net worth investors i.e.
(i) an individual who has at least 50 million baht in total assets or 4 million baht in annual income or 10 million baht investment in securities (can be combined with that of spouse) or
(ii) a juristic person having shareholder equity of at least 100 million baht or securities investment of at least 20 million baht.
The minimum investment is 10% of loan amount or 100,000 Thai Baht. For example, if the loan amount is 2 million baht, the minimum investment is 200,000 baht, or if the loan amount is 800,000 baht, the minimum investment is 100,000 baht.
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.
Our default rate since the beginning of operations in 2017 is 0%.
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.
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.
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.
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).
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.
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.
Loan repayments include both interest and capital. Repayments are made monthly. Since it is amortized loan, investors can re-invest in other loans while not having to wait for the loan to be repaid
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.
In case of default, our team will proceed with collecting the loans. If late payments take longer than 30 days, we will pass the loans to a legal collection agency. The colleced loan amount (after fee) will be distributed to investors. However, if a borrower does not repay the loan, investors will lose their investment in that loan.
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.