To help you identify investments that meet your risk-reward appetite, Proplend pioneered the peer to peer lending Loan Tranche Model. We understand that investors have different attitudes to risk and return, so our platform loans are split into up to three loan to value-based ranges – enabling more people to feel comfortable investing.
For example, Proplend Tranche A loans are one of the lowest-risk loan investments on the UK P2P market. Loan capital is capped at 50% of the securing property value for these investments with an average annual interest rate (AIR) of 6.72%* p.a. At the other end of our scale, Tranche C (our highest risk) investments, are capped at 75% LTV with an average AIR of 10.86%*. *AIRs calculated for 12-month period to 31 December 2020.
| Proplend Tranche | Loan To Value | Comparative Risk | Comparative Return |
|---|---|---|---|
| Tranche C | 66-75% LTV | Highest Risk | Highest Return |
| Tranche B | 51-65% LTV | Intermediate Risk | Intermediate Return |
| Tranche A | 0-50% LTV | Lowest Risk | Lowest Return |
These same loan tranches, first adopted for our Classic accounts, are available to invest in via our IFISA. Simply choose the tranche (or tranches) with a risk-reward balance you’re comfortable with, across the loan investments you want to invest in. You can choose to invest across multiple loans and one or more LTV-based tranches to diversify your Proplend IFISA. We’re not authorised to offer investment advice.
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