Ways to lend

Managed lending

Delegate your lending to Creditmonga, and we will lend your money for you. We offer various Managed lending styles to suit different lender profiles. Choose the lending styles that are right for you.

Your money is pooled with other lenders and lent out to a wide range of loans; spreading your investment across various loans means you immediately benefit from diversification.

Managed Lending may be suitable for you if you don't have the time to pick and analyse loans to invest in.

Your money is pooled together with other investors and invested in a wide range of loans. There are different lending styles to choose from, each investing in different types of loans.
Choose a lending style that suits you.
Saves you the time of analysing and picking loans to invest in.
You can investment using as many lending styles as you like.

Choosing your lending style

To start using Managed lending, you will need to choose an appropriate lending style. Review the terms and conditions of each lending style before investing. The terms and conditions set out how your money will be lent out and this will usually cover;

the types of loans invested in
the target return
charges and fees for each lending style
any terms for investing
any terms for access or withdrawing you funds

Balanced lending

Lend to the full range of borrowers. Higher projected returns. Higher projected defaults Risk ratings included: A, B, C, D, E
More info >>

Cautious lending

Only lend to borrowers assessed as lower risk. Lower projected returns. Lower projected defaults Risk ratings included: A, B, C
More info >>

Automated lending

Our Autolend feature makes lending easier. Use the Autolend feature to automate your lending. Simply set your lending criteria and Autolend will match you to the right loan investments.

Autolend may be suitable for you if you don't have the time to pick and analyse loans to invest in.
Easier lending
You will not have to manually pick and analyse loans individually. You only need to set a criteria of loan investments you are looking to invest in.
Quicker lending
In demand loans can close quickly. Autolend automatically matches you with eligible loans as they become available, giving you priority access and ensuring you don't miss out on the loan investments.
Reinvest your earnings
Reinvest your earnings automatically. Autolend ensures your loan repayments are immediately reinvested according to your chosen criteria, maximizing your lending.
Set multiple Autolend orders
There no limit on the number of Autolend orders, you can have as many as you like
Set up Autolend

Invest using Autolend

Setting up Autolend
To create an Autolend you need to decide on your lending style and set the criteria for the loans you are looking to invest in.
The criteria includes:
the term, rating and type of loan
amount you want invest and how you want to spread this across the various loans
you can set the maximum amount to invest in a single loan, the maximum amount to invest in a loan category
set the interest rates to charge on various loan categories

Matching process
Autolend will match you to any available loans that meet your criteria. In addition you will be matched to any loans that become available in future (new loan applications or loans put up for sale) meeting your criteria.

Manage your Autolend
You can track the progress of your Autolend
You can check how much has been lent out, the list of loans funded and the remaining funds left to be lent out.
You can update or close your Autolend at any time.

Self-select lending

A hands on approach to lending. Self-select lending lets you hand-pick the loans you want to invest in. You get to decide which loans to fund, how much to lend, and the interest rate to charge. Loans are listed online, and divided into New loans from borrowers and Existing loans being sold by other investors (Resale loans)

New loans

New loan applications are listed in the New loans section of the market. Each loan listing includes loan and borrower information to help lending decisions.

Lending
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To start self-select lending, submit a bid specifying the amount you want to lend and the interest rate you'll charge.

Matching process

The matching works as an auction. Lending bids are ranked based on interest rates, with bids with the lowest interest rates prioritised. The best bids are presented to the borrower as a loan offer. If the borrower accepts the loan offer, the loan is processed and funds are transferred from investors to the borrower.

If your bid is successful, the funds will be taken from your account and sent to the borrower. You will need to ensure you have sufficient funds to cover your bid. Once the lending process is complete, you will become the holder of the loan and be entitled to receive future payments and earn interest from the loan. You may also be able able to sell your loan.

Unsuccessful bids will be closed You can keep track of the status of your bids on your account page.

How much should I bid?
As a lender you need to balance offering a competitive interest rate to attract borrowers while ensuring a sufficient return on your investment.

Creditmonga provides information on loans on the market to help you evaluate loans. Use this information to help with your lending.

Resale loans

You can buy and sell loans on the resale market. Trading loans on the resale market allows you to:
cash in on your loans before the loan term
buy loans to build your portfolio quicker
rebalance and diversify your portfolio quicker

Buying a loan may be quicker than lending on new loan applications. Once a buyer and seller are matched, the sale is finalised and settled immediately. In contrast, for new lending, settlement only occurs once a borrower accepts a loan offer, which may take longer.

Trading loans
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Both buyers and sellers can initiate a trade. A buyer can place a Bid to Buy a loan specifying the Bid Amount and Bid Interest Rate the buyer is looking for. A seller can also place a Sell Offer specifying the Sale Amount and the Offer Interest Rate.

Matching process
Buyers and sellers are matched based on interest rates. Buyers bid the interest rate they are seeking from the loan investment (the Bid Interest Rate), while sellers offer the interest rate they are willing to offer on loan (the Offer Interest Rate).

A buyer is matched to the seller offering the highest Offer Interest Rate that is higher than the buyer's Bid Interest Rate.

A seller is matched to the buyer with the lowest Bid Interest Rate that is lower than the seller's Offer Interest Rate.

The transaction occurs at the midpoint between the buyer's Bid Interest Rate and the seller's Offer Interest Rate.

Buying a loan
Submit a Bid to Buy, specifying the Bid Amount and the Bid Interest Rate.

On submitting the bid , we will search the market for matching sellers. If there are no matching sellers, your bid is kept open in the market for future sellers.

How much should I bid?
As a buyer you need to balance bidding a low competitive interest rate to attract sellers while ensuring it's high enough to give you a sufficient return on your investment.

Selling a loan
Submit a Sell Offer, specifying the Offer Amount and the Offer Interest Rate On submitting a sale offer, we search the market for matching buyers. If there are no matching buyers, your offer remains open on the market for future buyers. You can normally sell any loan you hold subject to some restrictions on late or defaulted loans .

How much should I sell
As a seller you need to balance offering a high competitive interest rate to attract buyers while ensuring it's low enough to give you a sufficient selling price for your loan.

You may also consider:
How quickly you want to sell the loan. You may offer a higher rate to achieve a quicker sale.
How much other sellers are offering for similar loans.
Underlying borrower rate (APR) – this is the rate the borrower is paying on the loan. This rate is used as a guide and buyers are unlikely to accept rates that are significantly lower than what the borrower is paying

Creditmonga provides information on loans on the market to help you evaluate loans.
The information includes Loan details like terms and conditions, Borrower details, History trading and transactions
Use this information to help with your loan trading.