Canada is set to get its first peer-to-peer consumer lender.
The Canadian Securities Administrator has granted permission for goPeer to operate in Ontario and Quebec.
Once launched, lenders will be able to invest a minimum of $1,000 into consumer loans in Canada and can choose to do so manually or through an auto-lend option.
Borrowers will be able to access loans of up to $25,000 with rates starting at 7.5 per cent.
Lending decisions will be provided within 24 hours.
It is only open to investors and borrowers living in Canada.
“GoPeer is on a mission to improve Canadians’ financial well-being by eliminating market inefficiencies and increasing transparency in the consumer lending process,” Marc-Antoine Caya, chief executive of goPeer, said.
“Automating the archaic and laborious loan underwriting process and investor compliance requirements allows goPeer to deliver a seamless experience and better rates to its members.
“Financial disintermediation offers a unique value proposition to Canadians: half of Canadians surveyed would prefer the interest paid on their loan to benefit a peer rather than a bank.
“GoPeer facilitates this while maintaining the highest professional standards. As a registered firm, goPeer must, amongst other things, comply with securities laws, maintain an effective compliance system and meet prescribed financial reporting, working capital, insurance and bonding requirements.”
Canada’s best-known P2P lender is Lending Loop, which was the first such platform to launch in the country offering business loans in 2016.
It has since been joined by Upstart and Borrowell.
Business P2P lender Funding Circle had planned to enter the Canadian market last year before putting its plans on hold to focus on its existing operations.