Credit Risk Report - Month 1

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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