A special form of the buyer’s credit is the so-called “CIRR loan”. If the credit card is used abroad, no fee will be charged for the foreign assignment.
In the international arena, more and more P2P credit marketplaces are establishing a secondary market. After some time at Zopa Italy and at Lending Club and Prosperity in the USA, Funding Circle, Zopa (Articles) and Yes-Secure (Article), three English-speaking markets are now bringing this feature to market in rapid succession. There is a mismatch in many P2P credit marketplaces.
Linked to the duration of the loans
The borrower can withdraw his loans at any time (often free of charge). Investors do not have this option. These are linked to the duration of the loans and thus for years, so that they (like other investments such as time deposits) have no chance to get their capital back quickly in an emergency. These allow a resale of the P2P loan shares to another investor.
What design options are available for the secondary market in life insurance? Although Credit unit limits itself to creating a quasi-exit facility for para assets, other providers have the ability to sell credit shares at a premium or rebate and sell them in a auction to sell again. In addition, the trading venue influences the level of fees and the rules under which loans may be traded (eg, no defaulted loans).
Secondary markets significantly expand the range of activities for investors. As on the stock exchange, credit stocks can also be bought and sold here. This is an important factor why Credit unit has created a relatively narrow trade in goods. Do secondary markets exist for the German P2P credit platforms? Both Smartphone and Luxmoney have no secondary market.
Old posts on: resale of Best bank loan?
Interest Rate Portals: No compensation in case of bankruptcy of the house bank
Interest rate portals on the Internet brokerage offer in the rest of Europe. With fixed deposits there are often more interest rates than with domestic banks. Interest rate portals in the network are not without risk. Due to the currently low interest rates at German banks, many investors are looking abroad. With fixed deposits there are often more returns. The problem: If investors want to establish a deposit at a foreign bank, they must have a place of residence in the corresponding year in the rule.
At this point, the interest portals come into play. For the interest portals. It conveys fixed-term offers from abroad – and attracts with more attractive interest rates than domestic shares. But beware: more yield brings more and more risks, says Niels Nagelhauser of the Consumer Advice Center Baden-Württemberg. In the case of interest rate portals consumer protection doubt that investors in the event of bankruptcy of Ausl. financing foreign bank receive a compensation payment – at least it could come to delays.
The platforms act only as a mediator for offers
Basically, the platforms act only as a mediator for offers from across Europe and money collectors. Nadja Hirsch from WeltParen explains, “We offer process-based online banking but are not a house bank and do not have a banking license.” Then they can set up a checking account with one of the partner banks of the Zinsportale Transfer deposit to the bank account.
However, this deposit is not serviced via the interest rate portal, but usually through the cooperation bank. At the end of the agreed period for the fixed-term deposit, the foreign institution pays the interest-bearing monetary amounts on the hedge account. The customer does not receive his own user account. Rather, the deposits are managed fiduciary by the bank and forwarded to the respective investment bank abroad.
Consumer protec- tors, however, are skeptical about the platforms: interest rate portals mainly offer banking services that, according to rating, are located in economically weak states – such as Bulgaria, Greece, Croatia, the Czech Republic, Malta or Portugal. In addition, experts at the Sparkasse point out that some investors can not benefit from the interest on fixed-term deposits with a term of several years.
This would be at the expense of returns, as an example calculation shows: Those who invest over 2.5 years with 2.5 percentage points in the amount of 10000 USD, get 1314 USD interest. But without compound interest, in the end only a return of 1250 USD remains. That would maintain a return of only 2.38.