Finding the best MyC4 loans

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MyC4.com accelerated growth during the past month. This is shown by stats on MyC4Stats.com (provided by Wiseclerk.com) showing the loan volume by origination month. Compared to earlier months the loan volume rose sharply in December and January. In December 150,000 Euro loans and in January 250,000 Euro loans were disbursed to African entrepreneurs.

myc4 loan volume by month
(Source: MyC4Stats.com)

The new MyC4Stats page offers reports helping lenders to find open MyC4 loan listings with the best rates. At MyC4 – unlike at Prosper – every lender funds a loan at his individual interest rate. In fact 50 different lenders funding one specific loan may each earn different, self-set interest rates. While MyC4 sets a maximum for the weighted average interest rate for each loan, it is still possible for an individual lender to bid higher and earn more after funding.

Example: A 2500 Euro loan to Clementine Gbrou, who exports grains to Europe the maximum weighted Wanted interest rate was 12% (lender interest, not borrower). This loan closed with a weighted average interest rate of 11,64% (lender interest). The individual lenders in this loan earn DIFFERENT selfselected interest rate between 3% and 13.5%. Several lenders thus achieved above average rates.

How to find the best loans?

To select the loans with the best rates for bidding in the listing phase a quick overview of available listings sorted by the maximum possible interest rates that can be bid, is important. Several tables on MyC4Stats help lenders on this. Sample screenshot:

Myc4 bidding tool
(Source: MyC4Stats.com)

The report presents the listings sorted by maximum interest rate (column Maximum bid) that can be bid and states the Euro amount above this rate that serves as a buffer before being outbid. The buffer is caused by the rule that new bids must always be place at least 0.5% lower then the current high bid.

First anniversary of Boober

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A year ago Boober.nl launched as first peer to peer lending service in the Netherlands. While Boober faced some hardship (especially on regulation issues) the first year of Boober can be called a success for the company. So far Boober has funded over 2 million Euro in loans in the Netherlands. Compare this to the 1 million Euro Smava.de has loaned in the much larger German market in the last 10 months.

But not all lenders are satisfied with the results. The PIVN an association of lenders, on Jan. 14th called for an investment stop. The main cause are fee changes. Richard van den Toorn, Secretary of PIVN, told P2P-Banking.com:

It's not going very well with Boober, although they claim otherwise. The
PIVN (association of investors) has indeed given an advice not to invest
in new loans until some of her demands have been met. Reason for giving
such an advice is that Boober changed their payment-policy for the
investors radically, without consulting the PIVN first. It's so much the
height of their fee …, but that they are making sure the
benefits are going to Boober first, leaving the investors [lenders] with the risk of
remaining payments from the borrower. Continue reading →

Google initiative to Fuel Growth of Small and Medium Sized Enterprises

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Watch the following video explaining why a Google.org initiative has commited 10.1 million US$ to fuel the growth of small and medium sized enterprises in developing countries. With a focus on India and East Africa Google aims to:

  • Lower Transaction Costs
  • Deepen Capital Markets
  • Catalyze Capital

While you cannot lend as an individual in this Google initiative, have a look at Kiva, MyC4 or Microplace which have similar aims.

Globefunder announces launch of peer to peer lending in India

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Globefunder announced the launch of Globefunder India, which it claims is the first p2p lending service in India.

GlobeFunder India is now up and running, making us the first online lending marketplace to establish operations there. If you are a lender in India, the good news is that you will soon have a way to capitalize on one of the most vibrant and fastest growing economies in the world.

I checked the website. "Up and running" does not mean that you can register as a lender or request a loan so far. In fact borrowers will not use the website in the Globefunder India process:

While in the U.S. lenders can access borrowers directly, in India the sheer size of the lending market and the regulatory environment necessitate a slightly different approach. In partnership with global managed services provider Intellecap and some of the leading banks in India, GlobeFunder India links lenders and borrowers through a network of well-established Micro Finance Institutions (MFIs).These MFIs are rated based on their credit worthiness similar to individual borrowers on the U.S. GlobeFunder marketplace, and these MFIs in turn work with individual borrowers through their extensive on-the-ground networks.

According to Globefunder there is an unmet loan demand in India of 40 billion US$.

If you are an Indian resident and use Globefunder India, please share your experiences in the Globefunder forum of Wiseclerk.com Thank you.