Credit Risk Report - Month 1

Financial planning Written by , Dec 12 2015

We're going to publish our credit statistics up to the web site - live.  That's a few weeks away, so in the meantime here are some early platform statistics. We have approved 21% of all applications. We wont do "scorched-earth" direct marketing, so we think we can improve our approval rate further. Almost 90% of the book so far is A or B risk-grade. The weighted-average personal income is $87,000 and the average loan size is $16,000.  The median borrower is 33 with 33% being female and 67% male. As at 9th December we have approved $725,000 of lending with $592,880 drawn down.

Risk Grade   No. of Loans % of Loans   Value Loans % of Book
A   10 27.0%   132,500 22.3%
B   23 62.2%   368,249 62.1%
C   2 5.4%   79,750 13.5%
D   2 5.4%   12,381 2.1%
TOTAL   37 100%   592,880 100%

46% of borrowers own their own home.  That doesn't mean we've used it as security. We only take security where loans are over $30,000. The largest loan so far is $60,500 which was secured over a car.  Refinances and debt consolidation make up 42% of the loan book. The next biggest category is car loans (which are all private sales.) Only one of the motor vehicle loans is secured, the rest were under $30,000.  Almost half of borrowers have opted for a 5 year loan term.  Borrower interest rates currently range from 10.64% to 15.90%.  That's based on investor rates currently between 8.00% and 9.00%.   

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