P2P lending, also known as online peer-to-peer lending, has quickly gained widespread popularity and been hailed as a new way to invest and manage money. P2P lending connects lenders and borrowers through an internet platform, using a compliant online lending company as an intermediary to meet their respective lending and borrowing needs. It requires no involvement from traditional financial institutions such as banks.
Zagga: a home-grown New Zealand P2P platform
Zagga's online investment and lending platform is a pioneer in New Zealand's internet finance industry. It uses independently developed risk management technology to match investors' investment preferences with borrowers' credit risk ratings. To improve investment security, borrowers generally provide property as mortgage security. If a borrower cannot repay the loan on time, the mortgaged property will be sold to protect investors' interests. Zagga focuses on making its online platform easy to use and flexible. Whether you are an investor or a borrower, this means a secure, convenient and straightforward experience.
What services does Zagga offer, and how do you transact on the platform?
For investors, we will maximise the potential growth of your investment
Zagga offers investors a new investment channel with access to higher returns. At its core, P2P lending puts funds to better use, providing investment opportunities that are more stable and offer higher returns than investing in shares. Compared with bank returns of 3%, investors using Zagga's P2P platform can receive expected returns of 5–10%, with the level of return depending on their chosen risk appetite. Every loan on the Zagga platform is independent. Zagga assesses borrowers against its own credit assessment criteria and assigns each loan a score. Investors can use these risk assessment scores to choose suitable investments. Once a loan is fully funded, investors receive monthly payments. Depending on the loan type, these may comprise interest alone or both principal and interest.
Greater security
All Zagga investments are secured against property, greatly reducing investment risk.
Zagga's professional risk assessment team carefully reviews every loan, determining its risk score and grade, along with the corresponding annualised rate of return.
The minimum investment starts at $1,000. Investors can choose to fund an entire loan or spread their investment across several projects to diversify their risk.
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The funds for each loan transaction are held in a separate trust account. Every investor in that loan is a beneficiary of the account, benefiting in proportion to their investment. The trust account administrator keeps a separate record for each beneficiary of each account.
Simple, straightforward and easy to use, all online
Once users have registered successfully, investing is easy. A few simple steps complete eligibility confirmation and the investor risk assessment. When a loan application matching an investor's requirements becomes available, Zagga notifies the investor and grants access to the application details, helping them avoid missing a suitable investment opportunity.
For borrowers, we will make borrowing flexible, simple, convenient and fast.
Whether borrowers want to put a business idea into practice, expand their company or invest in property, Zagga can offer more flexible lending policies than banks, giving borrowers more financing choices and more competitive interest rates. Once borrowers submit an online loan application and establish a credit profile, Zagga will find suitable investors based on their needs. Zagga makes borrowing simpler. Borrowers only need to register online as required and then follow the loan application process.
Zagga can provide loan solutions for a variety of permitted borrowing purposes and tailor loan terms, giving users a range of suitable options.
Borrowers must register a mortgage over real estate, such as a home, commercial property, land or other property and assets, to secure the funds. Additional guarantees may be required in some cases. Although several investors may provide the loan funding, borrowers only need to sign a contract with a single legal entity and make instalment repayments to that entity. Zagga takes care of all the complex legal matters and other ongoing services.
Zagga is committed to serving high-quality customers whom banks have chosen to turn away because of strict credit policies.
Visit Zagga's official website at www.zagga.co.nz for more information, or call:
Freephone 0800 286 286; Chinese-language hotline 0508 158 158
Or email chinese@zagga.co.nz with your enquiry.