Lendermarket interest paid to investors falls in November
Lendermarket has seen interest paid to investors in November come down from a record €1m (£860,225) the previous month to €307,923.
The Dublin-based peer-to-peer lending marketplace saw €11,343,108 invested through its platform over the month, up from €10m in October.
A spokesperson said the fall in interest paid to investors was due to a large proportion of loans getting repurchased in October. When loan originators repurchase loans, the interest gets paid out at the same time.
“An increase in investments does not mean that the interest will get paid out straight away,” the spokesperson added. “The minimum interest payment interval is 30 days so it’s likely that the interest payments for next month should be higher than this month. However, if the majority of the loans that got issued this month are late, then the amount of interest paid out next month might not necessarily be higher.”
The platform added 31,355 new loans over the month, up from 25,739 loans in October and nearly double the number of loans it originated in September. The total value of loans added in November reached €12.9m.
Lendermarket has been contacted for comment regarding the decline in interest paid to investors last month.
According to figures published on its website, Lendermarket’s current portfolio is valued at €42.7m.
Read more: Lendermarket sees October uptick with €1m paid out to investors
The platform, which connects investors with consumer loans issued by European originators has registered an average annual return of 14.37 per cent. With €290m invested in total through the platform, Lendermarket has paid a total interest of €7.9m to investors.
Earlier this month, Lendermarket, led by chief executive Endrik Eller, introduced a Christmas bonus, which is expected to boost its target returns for December to 17.1 per cent, up from the usual 14.1 per cent target returns on loans.
The three per cent cashback bonus is being offered on loans issued by Creditstar Group with a maturity of 13 months or longer.
Read more: Lendermarket bonus deal boosts returns to 17.1pc
Read more: Lendermarket platform adds Nigerian loan originator
