Loanpad
Loanpad is on a mission to give investors a simple, smart way to make more of their money. They have an innovative structure that lends through shared short-term property loans. By partnering with established property lenders the platform states “Our innovative structure effectively shields our customers from much of the risk of peer-to-peer lending by partnering with established property lenders, who take on both higher risk and return.”
Fees
Loanpad charges no upfront fees to customers, instead, they take a portion of the interest earned from borrowers.
All loans are secured against property and invested monies are spread across all loans in their portfolio at any one time
Products and Fees
They have two lending products Classic and Premium, both accounts pay interest on a daily bases. An Interest Cover Fund is available which is a ring-fenced fund designed to maintain the daily interest payments in the event loan repayments are missed. The fund is maintained by a service charge fee to the borrowers. The fund retains discretion as to the amount that may be paid and does not guarantee it will cover all interest at all times.
Withdrawal of funds
Loanpad aims to process any request for the withdrawal of funds are typically the same working day, although from time to time is may take up to 3 working days.
Contingency Fund
The platform operates an Interest Cover Fund. This is a unique fund that in the event a borrower falls behind on their payments it will cover the daily interest payments. The platform also states "The Interest Cover Fund we offer does not give you a right to payment so you may not receive a pay-out even if you suffer loss. The fund has absolute discretion as to the amount that may be paid including making no payment at all. Therefore, investors should not rely on possible pay-outs from the Interest Cover Fund when considering whether or how much to invest." Loanpad provides realtime details of the fund on their platform at any time.
Wind-down Procedure
If for any reason Loanpad should become insolvent or cease trading they have put plans place to manage the loans and ensure that the income gathered from the loan book is sufficient to cover the costs of managing the loans during the wind-down process.
All monies that are kept in the lender's cash account is kept separately in a ring-fenced Barclays Bank UK account from the day to running of operations of the platform.
Loanpad Products and Investment
Investor Overview
- IFISA available with both investment products
- Earn daily interest which can be reinvested daily or withdrawn monthly
- Interest Cover Fund available
- Invest from £10 - £250,000
- Two investment products available Classic and Premium
- Withdraw funds within 3 working days
- No fees are charged to the investor nor the borrower, instead, they take a portion of the interest earned from the borrower
- * correct as of 11/03/2020
£41M
loan book volume
0.00%
default rate
7.38%
average interest rate
£4,515,000
biggest loan
* correct as of 18/06/2020
Officers
Stephanie Tamman
Appointed: 19-10-2021
Louis Schwartz
Appointed: 10-03-2015