In short, a loan from a marketplace lender differs to a bank loan in the following ways:
- The loan is not provided by a traditional financial intermediary, like a bank or credit union. Instead investors, both retail (e.g. “mums and dads”) and wholesale (e.g. high net-wealth individuals and institutions), fund your loan through the purchase of Loan Units in the OurMoneyMarket Investment Trust, which all occurs via a marketplace on OurMoneyMarket’s online platform.
- Unlike the banks, marketplace lenders don’t apply a “one size fits all” approach to lending. If a borrower has demonstrated good credit behaviours they will be rewarded with a lower interest rate. Furthermore, marketplace lending allocates risk to those that are willing to take it, meaning that a lot of creditworthy borrowers who aren’t able to get a loan from a bank, perhaps due to the banks rigid credit policies, could be successfully funded through the OurMoneyMarket platform. It’s a credit where credit’s due approach.
- We offer a seamless and paperless online loan application process. Plus, when you receive your loan we provide you with a personalised online account, so that you can track and manage your loan. We look to take the hassle out of both applying for, and managing, money.
