In order to service more customers, online and traditional lenders typically need to raise funds fast and at affordable rates. FINT is now partnered with these lenders to raise capital to lend to their customers at the most competitive rates without any hassles.
These lenders fund their borrowers, at a certain rate and tenor, these disbursed loans are then made available to investors on FINT at a lower interest rate in order to raise capital ahead of payback by their borrowers. The lending companies pays back monthly.
What are the risks?
The risk of most loan investments is the concern as to what happens in the event of default, this risk is minimised as the originators of these loans provide a buy back guarantee.
The buyback guarantee means that if the loan is delayed by more than 0-30 days, the lending company will repurchase the investment for the nominal value of the principal and accrued interest. This process of repurchase is automatic and there is no requirement from the investor.