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 eLoan to mitigate the risk:
- 1) All loans are issued with the borrower's ability to repay the loan taken into account. We use our in-house scorecard to grade various loan risks for our investor’s consideration. Our loan grading systems have but one purpose: to mitigate the loan risk for our investors.
- 2) For certain types of loans, the loan originators have offered collateral to be used to recover the loan in the case of default, thereby lowering credit loss risk.
- 3) For certain loans, other credit enhancements are obtained, such as a personal guarantee or loan insurance offered by a third-party insurance company.
- 4) For certain loans, the loan originator has provided a buy-back 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 till the date of repurchase.
Investors can mitigate risks by diversifying - making fractional investments in several loans across different borrowers, loan types, and loan originators.
The income earned at eLoan is taxed for each investor based on legislation of the respective country where the investor is a tax resident. As laws vary in each country, please consult an appropriate revenue service or a tax specialist for more information. Each investor can receive extensive information necessary for tax returns when logged into their eLoan investor account. Below you can find more information about tax implications for tax residents of selected countries. The information provided does not constitute tax advice. All investors should seek independent tax advice.Here in Vietnam, the current income tax for lending is 5% on interest received.
We charge fee to borrowers for every successful loan disbursement
In the unlikely event that a loan originator goes out of business, we have put in place arrangements to ensure that investors continue to receive payments on the loans in which they have invested through the eLoan marketplace.
As per the assignment agreement and cooperation agreement with eLoan, in the event of insolvency of the loan originator, eLoan as a proxy of the assignee, would take over the management of the claim from the loan originator and recall authorization of the assignee to the loan originator. After having taken over the management of the claim from the loan originator, eLoan would be entitled to transfer the management of the claim to any third party at eLoan’s discretion. This means that eloan as a proxy of the assignee would inform the borrower on the assignment and direct continued payments to eLoan or any third party at eloan discretion.
Bank account: 0721000621241
Beneficiary name: Công ty cổ phần eLoan
Bank: Vietcombank Branch Ky Dong
First, you need to have available funds in your account at eLoan to make investments. Learn how to transfer funds to your eLoan account in the Getting Started section.
Once you have sufficient funds, there are two ways to invest:
1) Auto Invest (Pending)
- - Set your preferred investing criteria, which you can change whenever you like; - Save time and effort, diversify your portfolio by investing in several loans at once;
- - Make your money work by continuously reinvesting interest earned in new loans, accruing compound interest;
- - Automatically invest in new loans as soon as they appear in the system without even having to log in. Keep in mind that you can stop Auto Invest at any time.
2) Manual Investing
- - Browse loans currently listed on the eLoan marketplace and select loans individually to build your portfolio;
- - Invest funds in the selected loans or their parts, with the option of reinvesting funds received from borrower payments.
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.
Your portion of the payment, which is calculated based on your investment in any particular loan, will be added to your eLoan account after the payment has been processed. You can then choose to invest the funds in more loans or transfer them to your bank or eWallet account. Because different loans have different payment due dates, most investors with multiple investments see a continuous stream of payments added to their eLoan account throughout the month.