Your quick guide to lending on the Creditmonga platform

Don’t invest unless you’re prepared to lose money. This is a high-risk investment. You may not be able to access your money easily and are unlikely to be protected if something goes wrong. Take 2 mins to learn more;

Lending on the Creditmonga platform

Creditmonga is a digital lending platform facilitating lending to consumer borrowers funded from institutional lenders and individual lenders. Creditmonga works as a marketplace, matching people looking to invest their money with those looking to borrow. Traditionally banks have been the main source of lending to individuals and businesses, however advances in technology and the internet have meant that it is now more possible than ever to lend or borrow via alternative ways. Alternative lenders are playing an increased role in the lending market filling some of the gaps in bank lending. Creditmonga aims to provide our lenders with high risk adjusted investment returns and our borrowers with competitive borrowing costs.

Understanding the risks

When lending via the Creditmonga, like all other forms of investing you need to consider the risks. Lending can be risky for several reasons. It is important to understand the risks involved and how they can be managed

Capital at risk
Lending via Creditmonga involves lending to individuals and businesses. Your investments are not covered by the Financial Services Compensation Scheme (FSCS). The value of investments and the income from it can go down and you may lose all your investment. It is important to the understand the risks involved. While OF strive to provide information for you to make an assessment of each investment, this is not advise tailored to your circumstances. If you are not sure if investment is right for you, seek advice from an independent financial adviser – see [more for risks link to risks]

Learn more about risks

Tax consideration

The interest you earn from lending is taxable, but it is normally paid without tax being taken off. That means if you are a taxpayer, you have to tell HM Revenue and Customs about the interest you’ve received. You have to pay tax on all the interest you should have received, even if you don’t get the full amount because of defaults. You can get an Innovative Finance ISA which allows loans to be held in an individual savings account (ISA). This means you can receive the interest from loans without paying tax.