Money9 July 20205 minute read

Making Investing Faster and Simpler

We are making important changes to our lending markets to help make investing faster, simpler and more predictable.

We are making important changes to our lending markets to help make investing with Plenti^ faster, simpler and more predictable.

We are reducing the maximum rates at which investors are able to create lending orders in each lending market, with the aim of:

  • reducing rate volatility in lending markets to make setting your investment rate simpler and more transparent.
  • increasing liquidity in lending markets to help facilitate use of the early access feature.
  • ensuring our loan offering remains competitive, to increase the opportunities for investors to fund loans to creditworthy borrowers.
  • helping us to maintain a cautious approach when determining borrower Provision Fund charges, to reduce the risk of your investments.

These changes are being made in light of the strong credit performance of Plenti's loan book over the last five years, including the Covid-19 period, which has supported Plenti's ongoing delivery of strong and stable returns relative to alternative investments. These changes are also being made in consideration of the significant decline in the Reserve Bank cash rate over recent years, against which many of Plenti's competitors' funding costs are set, and against which Plenti competes for creditworthy borrowers. 

Plenti considers that these changes are in the best interests of investors. It is anticipated that these changes will:

  • Allow Plenti to attract better credit quality loan applicants and provision greater amounts to cover expected credit losses, therefore helping to improve overall risk-adjusted returns to investors.
  • Increase the investment opportunities available to investors, given greater rate certainty and in some instances, lower rates will help to ensure Plenti's loan offering continues to remain an attractive option for borrowers.
  • Provide investors with a simpler investment experience, with greater rate certainty, lower reinvestment risk and reduced administration.

We look forward to continuing to provide investors with strong, stable investment returns. 

There is no new Product Disclosure Statement (PDS) for the RateSetter Lending Platform in relation to these changes, as the current PDS sets out that maximum rates for each market may change from time to time.

Frequently Asked Questions

1. What are the new maximum rates?

The maximum rates in Plenti's lending markets are as follows:

  • 1 Month Rolling: 4.4% p.a.
  • 3 Year Income: 5.5% p.a.
  • 5 Year Income: 6.2% p.a.
  • National Clean Energy: 6.0% p.a.
  • SA Renewable Energy: 4.4% p.a.

2. How will changes to maximum rates impact my current Plenti investment?

Funds that are already on loan will not be impacted by any changes to maximum rates. However, existing lending orders or reinvestment settings where the specified rate is higher than the new maximum rate will be impacted.

Any lending orders that you have on market at rates above the new maximum rate for the respective lending market will be cancelled and funds will be returned to your holding account. Likewise, any reinvestment settings where the specified reinvestment rate is higher than the maximum lending rate will also be cancelled. You will be notified by email if your lending orders or reinvestment settings are impacted by changes to the maximum rates.

Importantly, reinvestment settings set at market rate will continue to operate as per usual. Please log in to your Plenti account if you wish to amend your existing lending orders or reinvestment settings. 

3. What happens to my existing lending order?

The changes to maximum rates will be made on Tuesday 14 July. Any lending orders that you have on market at rates above the new maximum rate on Tuesday 14 July will be cancelled and funds will be returned to your holding account. You will be notified by email if any of your lending orders have been impacted.

4. What happens to my reinvestment settings?

The changes to maximum rates will be made on Tuesday 14 July. Reinvestment settings with specified reinvestment rates above the respective maximum rate on Tuesday 14 July will be cancelled and future payments will be returned to your holding account. You can update your reinvestment settings via your Plenti account.

Reinvestment settings set at market rate will not be impacted by any changes to maximum rates and will continue to operate as usual. 

5. How often will maximum rates be changed?

Plenti will review the maximum rates from time-to-time. Maximum rate changes may be notified to investors at any time.

While we retain discretion on the maximum rates set, in determining the maximum rate, we will consider several factors including but not limited to:

  • Rates at which we can continue to attract creditworthy borrowers;
  • Ability for us to increase the investment opportunities for our investors; and
  • Ensuring that we can continue to charge appropriate levels of risk provisioning to the Provision Fund.
  • Investors will be notified if any subsequent changes to maximum rates are made. 

We understand that changes to maximum rates are important, so we are committed to keeping all investors well informed of any changes.


Author image for Glenn Riddell
Written byGlenn Riddell
Glenn co-founded Plenti in May 2014 and has broad experience in building disruptive finance platforms, and in the retail lending industry since 2007.
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