TOC:
Brocc is a company that connects individuals that need to borrow money with individuals that have money to lend. It is a business, not a charity, and interest is charged on all loans. Part of that interest goes to the lender.
Lender and borrower are never in direct contact with each other. All transactions take place through Brocc.
Brocc works similarly to a regular broker such as eToro and Oanda. The only difference is that you trade loans instead of stocks and CFD:s.
About Brocc
Brocc was launched in 2016.
It is regulated by Finansinspektionen, Sweden´s financial supervisory authority.
Brocc has a good reputation in the Swedish market. Example of Swedish Brocc review. (use google translate to read)
Risk assessment and interest rate
Brocc makes an individual credit risk assessment for each loan application and offers an interest rate based on that assessment. The potential borrower can then accept or reject the offer. If the offer is accepted, the process continues and it becomes possible for the borrower to be matched with potential lenders.
It is always up to the lender to select which loan or loans to fund.
How much capital is required to get started?
To get started using Brocc as a lender you need to register an account and deposit a minimum of 1 000 USD into your Brocc account.
What is the length of the loans?
The length of a loan is set individually for each loan. As a prospective lender, you will know this information before you decide to lend any money to the borrower.
The average length for a loan approved by Brocc is 8 years, but many borrowers repay their loans quicker than required and this has brought the average loan time down to circa 4,5 years.
Fees for lenders
When you lend money through Brocc, you pay a fee to Brocc and this fee is based on the interest rate. This means that you don´t pay any fee unless you are actually receiving interest payments.
At the time of writing, the fee is 1.8% of the yearly interest payments. Always check current terms and conditions before you make any investment.
The fact that Brocc makes money on paid interest rates (instead of charging lenders a fixed fee) makes Brocc extra picky when assessing loan applications. Borrowers who default on their loan and fail to pay interest are bad news for Brocc.
Can the interest rate change during the lifetime of a loan?
No. The interest rate is set before the lender and the borrower accept the terms and conditions of the loan. This agreement is valid for the lifetime of the loan and the interest rate can not be increased or decreased.
About the loans
Size
The smallest possible loan is 1 000 USD and the largest one is 35 000 USD. This doesn´t mean that anyone who gets approved for a loan will get approved for a 35 000 USD loan. Brocc always makes an individual risk assessment.
Repayment period
The repayment period offered for a loan will be anywhere from 6 months to 10 years, depending on the circumstances. As a prospective lender, you will see the repayment periods as you browse potential loans.
Borrowers are permitted to repay their loan quicker than this if they want to.
Interest rate
The interest rate is set individually for each loan, based on the credit risk assessment.
The interest rate is fixed for the duration of the loan.
The average interest rate for loan applicants with an excellent credit rating is currently 5.5 percent.
For loan applicants with the lowest credit rating, the average interest rate is currently 18.99 percent.
Part of the interest rate goes to Brocc and part to the lender. Always check the exact terms to find out what you stand to gain from lending money to a specific applicant.
