These investments - called loan-series - are bundled loans. Loan-series are an 12 month investment.
Investors get access to groups of consumer loans originally granted by a bank. Such investments were once available only to large institutional investors. Today, anyone can benefit from those attractive investments as an alternative to bonds, stocks, bank deposits or mutual funds. Borrowers apply for loans which are granted to them based on the scoring that forecasts their payment behavior. Individual loans are bundled together into groups that are called loan-series.
Loan-series are groups made up of more than hundred single loans originally granted by a bank. Regardless of its size, an investment consists of a small share in all loans of such group. Technically investors own fractional claims of a diversified group of loans. Ferratum aggregates all repayments from borrowers and distributes monthly payments to investors according to their share.
If a borrower misses several payments Ferratum buys back all non-performing loans within the loan-series. Any loan not current for 60 days will bought back at 85% of the remaining principal amount. We put a variety of measures in place to make your investment as safe as possible.
Ferratum P2P is a business line of Ferratum Czech s.r.o. which is a part of Ferratum Group, a pioneer in the field of financial technology and mobile lending. The group has expanded operations to 23 countries across Europe, Australia, New Zealand, and North America. Ferratum Group was founded in Finland in 2005 and went public in 2015. Ferratum Oyj is listed in the prime standard segment of the Frankfurt Stock Exchange. Ferratum Czech s.r.o. provides end-to-end loan servicing, administration and payment collection from borrowers. Administration related to loans, including the recovery of late payments is taken care of in our modern, effective system.
There is a variety of measures in place to make your investment as safe as possible. Ferratum administers the process from end-to end. Scoring borrowers is done according to banking standards. We are administering all loan accounts and collecting late payments if needed. This allows us to quickly identify if a borrower has challenges with their payments and Ferratum works immediately to bring loans back to current status. Based on a decade of experience with 1.2 million loans granted in consumer finance, we don´t outsource any important task.
The expected annualized return of a loan-series is 8.9%. Performance fluctuates and depends on the actual payment behavior of the borrowers. Past performance is no guarantee for future returns.
The expected return is based on calculations from the data obtained from previous periods and it cannot be guaranteed in the future. Yor money is at risk with this investment.
With Ferratum, you never invest in single loans so you never bear the full default risk of a single borrower. As an investor you get free diversification because you hold a share in a large group of multiple individual loans.
Loan-series are done-for-you investments. There is no waiting time for investors, as only fully funded loans are offered. This saves time in the investment process. Ferratum provides the opportunity to profit from consumer loans which were originally granted by a bank.
The underlying loans were issued by a Bank, that owns a full banking license and is regulated in according to banking standards. More than 1.2 million customers have been granted one or more loans in the past.
You´ll experience with Ferratum the speed, comfort and transparency of modern technology-based FinTech, but also the prudence and experience of loans issued according to bank standards.