Ratesetter loan size

ffacoffipawb

I joined this site in November with a referral link from here.

My £1,000 deposit was actually lent out in one loan on a rolling basis. This has now come down a bit due to repayments so i have 4 small loans and this one big one. Obviously one large exposure like this is not what I wanted or expected.

I was going to put another £1,000 in. However if I do so I want a maximum exposure per loan of £50.

No obvious way of doing this apart from depositing £50 per day for 20 days. And waiting for each day's contribution to be lent out.

Am I missing something obvious in the account settings. Their FAQ is silent on this matter.

Any experienced ratesetters here with any information?

Thanks

bxboards

Hi

Ratesetter does'nt work the way you think.

Your money is already diversified between borrowers -trust me what you are trying to do is pointless.

For additional confirmation, try asking on: http://p2pindependentforum.com/board/34/ratesetter

Alexland

We each put £1k into the 1 year market and both amounts matched a couple of hours later presumably to the same borrower. My understanding is that RateSetter have a bad debt provision fund which would cover losses occurring on individual loans. I don't care that much as we will get our money back soon and will close the accounts.

masonic

As others have suggested, it makes no difference who your money is lent to. Defaults are paid for first using the provision fund, and next by a haircut to interest and capital repayments imposed proportionally upon all lenders to cross-subsidise those affected by the defaults. You'll make the same loss in this situation whether none of your loans have defaulted, or you are invested in just one loan with 100% loss of capital.