FAQ for Lenders
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Juggar is a P2P lending platform that connects fixed depositors (Lenders) with blue-chip stock investors (Borrowers). Here are the steps to being a Lender:
(i) Sign up for an account
(ii) Select a loan request that matches your lending criteria (stock, interest rate and loan tenure) from our marketplace
(iii) Finalise loan agreements and sit back while your fixed deposits work for you.
Any person based in Singapore above the age of 18 can lend money through Juggar.
Borrowers on Juggar 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.
Juggar will administer the collateral and monitor the share price on behalf of the Lenders. This means we will do the margin calls and force-selling if necessary.
Borrowers can only pledge marginable shares determined by Juggar. The criteria for shortlisting of the shares will be dependent on the volatility, market capitalization and trading volume of the shares. In simpler terms, those deemed less risky are more likely to be on the list.
Juggar aims to bring benefit to all parties. 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.
As Juggar is still in development stage, we are still working towards getting the required licenses from MAS.
There is no need for the Lender 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.
Juggar do not provide any guarantee that the lenders will receive their capital back or achieve a targeted returns. However, lenders are protected by the collateral put up by the borrowers, which means your downside risk is minimised.
The tenure will be between 2 weeks and 6 months.
No, money will only be repaid by the Borrowers at the end of the tenure so chose your tenure wisely. We will provide the tools for you to make an informed and intelligent decision.
Currently, the rates for fixed deposit is around 1.00% and the borrowing rates for Borrowers is around 3.25%. We envision the interest rates to be in between these two rates.
Yes. Before Lenders can participate in the lending, funds have to be deposited with Juggar first so as to ensure the certainty of the funds to the borrowers upon a successful match.
Lender funds will be deposited in a segregated account to ensure that they are safe until a match is found.