Kviku Online Bank review

 Kviku Online Bank review

It’s quite likely that you have at least a few Kviku loans in your portfolio if you use certain popular marketplace lending platforms. Since recently, you can invest in them using a dedicated site with no other intermediaries

What does Kviku Finance offer?

Kviku Finance allows you to invest in unsecured consumer loans issued to borrowers via three main products:

• Virtual credit cards, with loan amounts below $50 and durations up to 2 months
• Point-of-Service (POS) crediting, offering no more than $300 for up to 12 months

• Instalment loans, given for 6 months or less and a maximum of $1,500

Virtual credit cards and POS loans are targeted at new customers, while larger cash loans are only available to returning customers with a positive track record. Instalment loans comprise around 50% of all issued loans and almost three-quarters of loans in 2020.

How much can you earn?

The platform advertises a 12% annual return, although any statistics regarding the current portfolio performance or historical results lack, so you just need to trust Kviku’s promise. Lowering the interest rates from the initial 15%, or 13-14% on other marketplaces, may be a sign of higher default rates (common across the platforms in 2020) and probably should be seen as a realistic correction. You certainly shouldn’t rule out a possibility of a further downward adjustment – at the time of writing, virtually all available loans offer interest rates of just 10 or 11%.

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