FAQ for Borrowers
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Juggar is a P2P lending platform that connects blue-chip stock investors (Borrowers) with fixed depositors (Lenders). Here are the steps to being a borrower:
(i) Sign up for an account
(ii) Decide on the SGX stock that you would like to invest in, how long you will roughly hold the stock for and the interest rate you are willing to pay, and Juggar matches you with Lenders with complementary financial interests and goals.
(iii) Finalise loan agreements and sit back while your investments work for you.
Borrowers are required to pledge at least a 30% collateral with cash or shares of Singapore listed companies. This roughly translate to 140% of loan amount (also known as margin ratio) which the Borrowers have to maintain.
Any person based in Singapore above the age of 18 can borrow money through Juggar.
Borrowers on Juggar can only take loans for the specific purpose of funding their trading activities on the SGX. Juggar does not facilitate personal or corporate loans at this point in time.
Borrowers are required to pledge at least a 30% collateral with cash or shares of Singapore listed companies. This roughly translates to 140% of loan amount (also known as margin ratio) which the Borrowers have to maintain.
That is to say if the price of these shares drop, Borrowers will have to top-up the difference with cash.
If Borrowers fail to top-up within the timeframe or if the value of the shares drops to less than 130% of the loan, the shares will be sold so that the losses do not eat into the lenders’ capital.
In the unfortunate event that this happens, the Borrower is still obliged to repay the full loan amount, plus agreed interest to the lender.
There is no need to conduct due diligence on Borrowers due to the quality of the collateral. The profiling of the Borrower such as anti-money laundering measures as required by MAS will be undertaken by Juggar.
We are envisioning the tenure to be between 2 weeks and 6 months.
No. After the loan agreement is finalised, money will only be repaid by the Borrowers at the end of the tenure, so there is interest rate and tenure certainty.
As Juggar is still in development stage, we are still working towards getting the required licenses from MAS.