GoPeer’s P2P Lending and Investing Approved for Launch

Canada’s first peer-to-peer consumer loan platform has launched in Ontario and Quebec, letting users borrow loans from citizen investors.

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Need to Know

  • Canadian Securities Administrator gave goPeer the go-ahead to operate in the provinces of Ontario and Quebec. 
  • Toronto-based goPeer is a regulated peer-to-peer lending platform focused on “making reasonable lending available to everyone.”
  • Qualified consumers interested in borrowing through goPeer complete a quick 5-minute online application and receive a decision in 24 hours. Once approved they can borrow up to $25,000 with an annual percentage rate from 7.5%. 
  • Investors (as in regular users) are able to invest as little as $10 per loan and will earn month repayments of capital and interest.
  • GoPeer is currently in an alpha phase and will launch in a few months.

Analysis

Securing a loan and investing is a bit more accessible with the Canadian Securities Administrator goPeer stamp of approval in Ontario and Quebec. 

“goPeer is on a mission to improve Canadians’ financial well-being by eliminating market inefficiencies and increasing transparency in the consumer lending process,” said Marc-Antoine Caya, CEO of goPeer in a release. “Automating the archaic and laborious loan underwriting process and investor compliance requirements allows goPeer to deliver a seamless experience and better rates to its members.”

GoPeer, a Toronto-based fintech, aims to disrupt the industry by cutting big banks out of the lending process by connecting qualified borrowers with investors and enabling better rates for both the borrower and the lender. Lenders are able to invest as little as $10 per loan, allowing for portfolio diversification in a previously inaccessible asset class. 

Loans from goPeer range up to $25,000, with a loan term of 3 or 5 years, and users can prepay at anytime without penalties. APR rates begin at 7.5%

“Financial disintermediation offers a unique value proposition to Canadians: half of Canadians surveyed would prefer the interest paid on their loan to benefit a peer rather than a bank. goPeer facilitates this while maintaining the highest professional standards. As a registered firm, goPeer must, amongst other things, comply with securities laws, maintain an effective compliance system and meet prescribed financial reporting, working capital, insurance, and bonding requirements,” said Caya in the release. 

Although goPeer is the first approved P2P lending platform in Canada, lenders have been operating in the US and the UK for over a decade. Borrowers and lenders in the US have access to companies like LendingClub, the first P2P lender to register with the Securities and Lending Commission. LendingClub has loaned over $35 million in both personal and business loans. In 2014 they became the first-ever publicly traded lending company. UK based, Funding Circle operates in both the US and the UK and allows proven businesses to grow and expand with loans up to $500,000. 

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