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After some days gone by without any new Georgian short term loans, loans with longer duration (up to 24 months) were added on Swaper. These loans come with monthly installements, if no payment is received, or the contract amended, buyback will be triggered. It seems as a change in Georgian legislation made it necessary to move from one month loans, to longer durations. The interest rate remains at 12, respectively 14% for VIP’s, percent. You will become VIP status when you deposited at least EUR 5’000.
Autoinvest settings must be adapted
Before today there were only loans with a duration of 30 days and therefor it was not necessary to set a duration for the autoinvest. Of course this has changed. Now standardly a duration of 0 to 1 month is set. This means you need to change that setting in order to grab some longer term loans. I recommend doing this, as your overall chances are better to get loans if you include longer durations. In the picture below you can see that the duration can be chosen from 0 to 24 months now. You need to decide here which period is suitable for you. At the end we should be clear that most 24 month loans won’t go for the full duration, as the loan is bought back on amendements and if it is overdue for more then 30 days. Most of the loans will therefor have a shorter duration as anticipated.
and a tipp for investing….
We all know that there a certain shortage of loan supply exists on Swaper at the moment. We seldom see loans on the platform, but this does not mean that there aren’t any. Lots of loans come in daily but are quickly absorbed by the AI’s. An here is the free tip: Create several AI’s with different bidding amounts. So you can increase your chances. What is an AI with a bidding amount of 50 Euro worth, when there are loans which are smaller then 50 Euro? Correct, nothing 😉 I use this rule, and am nearly totally invested all the time.
At the end a short calculation example
Even though some cash is laying lazy around in your Swaper account sometimes, this is not that bad as expected. Look at this sample calculation: (assumptions: you are VIP = 14% yield, 10% on any day.). We are only invested to 90 percent, and therefor we get only 90 percent of the interest (14%) = 0.9 x 0.14 = 12.6%, what is not that bad after all. But as we are reinvesting, we can compund our return and get an annualised 13.35%. That is of course only an example, my average cash rate is somewhere near 1%. I hope you are not afraid by little cash balances anymore 😉
If you have any questions, post them here or contact me. Happy investing.