P2P Lending Update 2021

Three years have passed since my last article on P2P lending and a few new platforms are launched during this period, I think it is a good time to write an update now. In this P2P lending update 2021, I am going to introduce some newcomers that I have not covered on my blog.

There is a total of 11 P2P lending platforms in Malaysia now. Other than the six (AlixCo, B2B FinPAL, Fundaztic, Funding Societies Malaysia, Nusa Kapital, and QuicKash) that I covered in my old article, the new platforms are CapBay, Capsphere, Cofundr, microLEAP, and MoneySave.

I have covered two of the five new players previously. These two are CapBay (previously known as CapitalBay) and Capsphere. CapBay seems to have reduce its minimum deposit amount to RM 10,000 instead of the RM 50,000 as stated in my previous article.

So, I will touch on Cofundr, microLEAP, and MoneySave in this P2P lending update 2021.

Brief comparison among the three platforms

Platform	Cofundr	microLEAP	MoneySave
Registration – first time deposit (RM)	1,000	50	5
Minimum investment amount per note (RM)	100	50	5
Loan tenure (months)	8 – 24	6 - 36	1 – 60
Profit rate per annum	6 – 15%	Up to 18%	6 - 16%
Platform fee	2% on principal (note >12 months); 20% on interest (note ≤12 months)	2% (one-off)	Up to 15% on interest; Up to 50% on prepayment
Repayment	Bullet or instalment	Instalment	Bullet or instalment
Withdrawal fee (RM)	1	1	Standard charge by bank
Withdrawal processing time	N/A	N/A	≤3 business days

More about Cofundr, microLEAP, and MoneySave

As of the time of posting this article, all three platforms reported a 0% default rate. It is actually quite impressive. Furthermore, each of these platforms also has some special features.

Cofundr offers general insurance premium financing, other than the normal notes. The benefit of this financing is that if the issuer defaults, the insurance policy will be terminated prematurely and the unearned premiums will be refunded to the investors.

microLEAP offers both Islamic and conventional notes on its platform. Besides that, it also offers Personal Accident insurance for the issuer.  Its microinsurance product will cover the outstanding loan amount should there be Accidental Death or Permanent Total/Partial Disablement to the business owner or key person.

MoneySave offers insured invoice financing notes. If there is a default or protracted payment of the buyer, the insurance company will indemnify up to maximum of 90% of the total loss to the issuer.

Conclusion

There are more choices for P2P lending now. If you are interested in this type of investment, just check out the respective platform and see if it suits you. This kind of investment may have a higher risk of losing the capital, so do take this into account. Perhaps just allocate a small part of your total portfolio to achieve the diversification effect.