Funding Circle has maintained its projected return rates following its latest review.
The peer-to-peer lending platform reviews the rates it has on offer each quarter by taking into account its assessment process, current returns and loan performance.
The platform has held rates at 4.5 per cent to 6.5 per cent for its Balanced product and 4.3 per cent to 4.7 per cent for its lower-risk Conservative product.
An update from Funding Circle’s global chief risk officer Jerome Le Luel last week said while the large majority of loans between 2016 and 2018 were performing as expected, a “small population” were impacted by a worsening credit environment.
The lender tightened its credit policies in 2019 and said this has provided positive results so far.
A fourth-quarter stock market update from the London-listed platform last week revealed projected returns after fees and bad debts had fallen in its German business but remain stable across its other markets.
The level of projected bad debts remained broadly stable across each country Funding Circle operates in, ranging between 2.1 per cent and four per cent of the loanbook in the UK, 4.8 per cent to 6.8 per cent in the US, 3.1 per cent to 4.9 per cent in Germany and 2.5 per cent to 4.3 per cent in the Netherlands.