NEO Finance has seen a steady growth of new investors in last few months – new month and new record issue again! March was exceptionally great, but April was even better! In total, investors of NEO Finance issued loans for more than 2.22 million euros!
WHAT IS NEOFINANCE
NeoFinance is a peer to peer investing platform that’s based in Lithuania. The platform has more than 6000 active investors, and the average return rate is about 17 percent. You can see more statistics about NeoFinance here.
SUMMARY OF APRIL on neo finance
Secondary market. In April, investors visited the secondary market a little less often than in March and traded investments for almost 154K euros.
A+ investments with 100% Buyback guarantee. On April 12 the first A+ rated loans with a 100% repurchase guarantee (“Buyback”) appeared on the market and those who want to invest under these conditions we invited to update their automatic investments. If you have not already done that, we recommend you to log in to your account and create an automatic investment, because non-updated automatic investments are no longer being active.
We are glad to see active involvement of investors!
During the 10-day transition period of the Buyback Terms, investors have created 1500 new automatic investments in the A+ rating according to the updated terms!
As the investment risk for investors in this rating decreased, so did changed interest rates for borrowers. Please note that the currently offered interest rate is between 5% and 8%, depending on the amount of credit and the investment period. If you are looking to invest at the highest possible interest rate, you could focus on loans with a term of more than 80 months limit.
Tips for creating an automatic A+ rating investment:
Make sure that the chosen period meets the desired interest rate, otherwise employment of money will not be successful. If you want to invest in shorter period loans, you could consider to reduce the interest rate to 5%, and if the period is not important, you can choose a higher interest rate of 6-8%.
When choosing the maximum amount for one loan, consider the size of your portfolio. If your portfolio exceeds the 1000 €, consider investing more than 10 € (about 1% of the total portfolio per investment) in one loan.
Think carefully about whether additional criteria will reduce investment risk more than greater investment diversification. Additional criteria (purpose of the loan, age of the borrower, available assets) will limit your ability to invest in more loans.