Loan Details: P2P Loans
In October, Investment Go lent money to many new borrowers and provided longer-term, lower-level loans to a growing number of customers. This is good news for our investors, who have more and more offers and a variety of peer-to-peer investment options with a wide variety of risk-return profiles to choose from. Overall, the number of borrowers in Finland almost tripled compared to the previous month, and lending in Estonia also increased by more than 50%.
Loan amount and average income
The average net income of Investment Go borrowers fell compared to the previous month in Finland ($ 2,571) and Spain ($ 1,631), but the average income in Estonia remained essentially unchanged at $ 1,325. At the same time, Investment Go granted significantly more loans in October than in the previous months. This is a good sign for customers looking for diversification. Be it through the automated investment service from Go & Grow or through the individually adaptable diversification of the Portfolio Manager or Portfolio Pro.
Investment Go has greatly reduced risk by reducing the amount of borrowing capital, especially those with low income and employment levels. With the decrease in the average income of borrowers, there was a decrease in the average loan volume. Finland saw the largest decrease of 25% to $ 2,790, while Spain saw a similar decrease of 23% to an average loan of $ 1,428. Borrowing in Estonia remained relatively unchanged, falling only slightly by 3% to $ 2,509.
Longer loan terms
As already mentioned in a previous article, Finnish loans were increasingly given loans with F and HR ratings. This has also led to an increase in average loan terms in Finland, which is now 55 months, up from 45 months in September. Longer loan terms give borrowers more time to repay their loans and also increase potential returns through more interest paid to investors. The development of the average loan term was shown directly in the raw data. In September, most loans in Finland were granted for 36 or 48 months, the vast majority of loans in October (807 out of 1,031) run for 60 months.
Loan terms in Spain increased again slightly to 43 months, while Estonian loan terms decreased somewhat to 50 months, comparable to the figures in September and August. These two numbers correspond to the relatively small changes in loan size and average income for borrowers in both countries.
Personal credit information
There was no significant change in the level of education, even with the many new loans granted. The only major difference is the increase in lending to school-educated people in Finland, who accounted for 47% (482) of loans this month, compared to just 28% (119) in September. In terms of housing status, most borrowers in Finland were tenants in October, last month it was owners and people who took out a mortgage. Investment Go received more homeowners in Estonia than last month. In Spain, more loans were also given to homeowners, but also to people who live with their parents.
The average age of Investment Go borrowers fell in Finland and Spain, the lowest in Estonia at 41. The majority of the loans are still given to people who have been employed for more than 5 years or over 5 years. This long and permanent employment is a positive factor in a borrower’s ability to repay their debts.
Summary of the general trend
Investment Go publishes its credit data each month to give investors an idea of the growth and breadth of investment options. The loan offer for our investors also increased in October. Loans with longer terms have risen significantly this month. This trend was most applicable to Finland as its credit supply increased dramatically overall. With a solid Finnish economy, borrowers appear to be confident that they can keep their jobs and repay their loans, especially over a longer period.
Our offers round off the diversified investment opportunities for all of our investors. This diversification is a hallmark of Investment Go’s peer-to-peer credit network. Lending trends vary from month to month and it is difficult to guess how it will develop in the future. Regardless, Investment Go will continue to provide investors with detailed credit data and information to help them make the best investment decisions.