Who can invest? Both individuals and entities can invest through Real Investment Loan. Individual investors must be at least 18 years old, have a bank account in the European Union or third countries currently considered to have AML / CFT systems equivalent to the EU, and have their identity successfully verified by Real Investment Loan.Family trusts, partnerships, limited liability companies and other organizations must have a bank account and be registered in the EU or third countries currently considered to have AML / CFT systems equivalent to the EU.
How safe are investments?
As with any investment, there are some risks. The biggest risk is associated with possible credit losses from investments. The following measures have been taken by Real Investment Loan and loan originators to mitigate the risk:
- All loans are issued under the established policies of the loan originators, which also take into account the borrower’s ability to repay the loan.
- For certain types of loans (eg mortgage loans or vehicle loans), the client has offered collateral to be used to recover the loan in the case of default, lowering credit loss risk.
- For certain loans (eg business loans), other credit enhancements are obtained, such as a personal guarantee.
- For certain loans, the loan originator has been granted a buyback guarantee, which means that if the loan is delayed by more than 60 days, the loan originator repurchases the investment for the nominal value of the principal and the accrued interest until the date of repurchase. Investors can mitigate risks by diversifying – making fractional investments in several loans across borrowers, loan types, loan originators, and geographies.
What is the minimum amount that can be invested?
The minimum investment in any single loan on the primary market is USD 10, USD 80, USD 25, USD 50, USD 10, USD 100, USD 50, USD 700 or USD 300. There is no minimum for investments in the secondary market.
How do I make money from my investments?
Each borrower makes monthly payments according to their loan agreements, which can consist of principal, interest and late payment fees, or any combination of the above. and a late payment fee of your payment is treated as your income. You can then choose to invest the funds in more loans or transfer them to your bank or e-money account. Because different loans have different payment due dates, most investors with multiple investments see a continuous stream of payments added to their Real Investment Loan account throughout the month.
What fees are applicable?
Investing through Real Investment Loan is free of charge. There are no fees for opening an investor account and no fees for depositing or withdrawing funds. There is also no service fee, or any other fee paid to investors.