June 9 2023

Kuflink offers rate boost on extended loans

Kathryn Gaw Top 3, UK News Kuflink, Paul Auger

Kuflink is offering a rate boost to anyone who is invested in a loan that has had its term time extended.

Effective immediately, all investors will receive higher rates on any loan where the borrower rate has also been increased. This typically happens when a loan as been extended, or where default interest is being charged.

Previously, investors received the same interest rate on all loans, regardless of whether the borrower rate had changed.

“We have introduced increased interest rates for investors on loans that are given an extension where the interest rate charged to the borrower also increases,” said Paul Auger, chief operating officer at Kuflink.

“We are also looking at paying increased rates to investors for loans that are incurring default interest, but this is still in development. It is a complicated process due to the technical issues around the process and the IT.”

Kuflink regularly contacts its customers for feedback and several investors said they wanted to see higher returns passed on to them when the borrower rate is increased.

In 2022, 8.5 per cent of Kuflink’s loans were repaid late. In 2023 to date, 11.7 per cent of the platform’s loans have been paid late. Since the company’s inception, no investor has ever made a capital loss.

Read more: Kuflink wins B Corp status