This is a new area for August Investments. It has taken some time to convince ourselves that adequate security is in place, and now we are ready to go. With a much smaller spread than that of the Banks, borrowers pay a lower rate and lenders get a higher return. Rates for investors vary from 4%pa for one month to 10%pa for 5 years (actual rates are set by a market mechanism). Truly disruptive.
The Lending Platform we have signed up with is RateSetter Australia – other platforms may be added later. Our initial investment was $10,000 for one month at 4%pa.