ChangeFund Fees, Charges & Interest Rates

Funding the Change

Peer to Peer Funding – The Ethical Lending Specialists

The world is changing. It’s time to evolve. This is the part of our business we want to get right! We are a Social Enterprise business. Our goal is to help people. One, by providing a genuine peer-to-peer lending platform and two, assisting charities. We certainly didn’t build our business around what fees we can charge.

We know borrowers may from time to time experience financial difficulties and miss a scheduled monthly repayment. Our primary focus is to get them back up-to-date. They certainly don’t need the added burden of excessive fees and charges every month, compounding the issue. All we need to do is cover our costs, so our fees are reflective of that.

Investor Fees

Description Amount Frequency Note
Provision Fund Fee 0.083% Monthly Deducted from the borrower’s principal & interest payments (1% annually)
Service Fee 0.167% Monthly Deducted from the borrower’s principal & interest payments (2% annually)

 

Borrower Fees

Application Fee $300 Once-off Charged upfront and deducted from the loan advance
Collections Fees Charged to the borrower
Dishonour Fee $5 On every occasion Charged to the loan if the direct debit fails
 

Default Fee

 

$15 Applied to the missed month
Charged to the missed month only. (So if it takes three months to makeup a missed payment, you will only be charged one default fee. If you miss two monthly payments, you will be charged two default fees)

Interest Rate

ChangeFund assigns each loan listed on the platform with a loan grade and interest rate based on an assessment of borrower creditworthiness and ChangeFund’s credit scorecard.

The interest rate on a loan is both the interest rate paid by Borrowers and the gross interest rate due to Investors.

A Grade Borrowers (First-class, low risk)

Borrowers given an A Grade risk rating show a good attitude towards their repayment obligations.

  • High capacity to repay loans
  • Excellent credit scores and credit history
  • Often homeowners and/or have other assets

 

B Grade Borrowers (Very Good, lower-medium risk)

B Grade borrowers demonstrate capacity and capability to meet their repayment obligations.

  • Good credit scores and credit history
  • Moderate risk of default
  • Vulnerable to changing economic conditions and could face challenges if economic conditions decline

 

C Grade Borrowers (Fair, medium risk)

  • Vulnerable to default
  • Limited credit history
  • Too much debt and more than a few late payments
  • Timely payments can be met  if favourable circumstances continue
A Grade Interest rate (p.a.) B Grade Interest rate (p.a.) C Grade Interest rate (p.a.)
1 9.99% 1 13.84% 1 18.52%
2 11.46% 2 14.49% 2 19.67%
3 12.03% 3 15.16% 3 20.82%
4 12.63% 4 15.80% 4 22.06%
5 13.25% 5 16.48% 5 23.23%

 

Grade Borrowing limit
A $60,000
B $50,000
C $25,000

 

Please click here to download our Fees & Charges Schedule

Please feel free to contact us on [email protected] for further information.