Get A Better Return With The RainFin Credit Marketplace

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1 Get A Better Return With The RainFin Credit Marketplace Introducing RainFin, South Africa s first credit marketplace. RainFin connects borrowers directly with lenders, on a secure and regulated online platform.

2 How Does The Credit Marketplace Work? RainFin's credit marketplace connects borrowers seeking transparent, cost effective loans with lenders wanting great returns. It's a fully online, safe and moderated experience with a substantially quicker turnaround time than traditional lending. The marketplace allowes borrowers to get access to finance quicker and more cost effective and lenders to get access to more diverse investment opportunities at lower fees. RainFin Marketplace Performs: Loan admin Identity verification Risk grading Affordability check Collection and disbursement of funds Reporting % % % 1 The Borrowers Personal, business and corporate borrowers apply online, are verified, submit KYC (Know Your Customer) documents and gets risk graded. 2 The RainFin Marketplace 3 The Lenders Personal, business and corporate lenders select loans on the marketplace according to their risk appetite and make offers on percentages of the total loan value. The loan can also be sold on the secondary marketplace. The Benefits To The Borrower Low fees Competitive interest rates Unsecured credit Funding available within 48 hours If approved, the loan gets published on the marketplace. The marketplace connects the borrower with the lender. The Benefits To The Lenders High earnings with monthly returns Low fees Full control over portfolio Regulated and bank level security

3 Who Can Lend And How Much? Lending as an individual: South African citizens older than 21 Lending as a business: South African registered businesses with South African citizens as directors All lenders should be registered on the website and agree with the terms and conditions Lenders will have to sign a risk disclaimer The minimum lending amount is R100 Non Credit Regulator (NCR) lenders can lend a maximum of R Credit Regulator (NCR) lenders have no maximum The Benefits To The Lender Ris diversification - spreading risk by makings small loans to a large number of borrowers Complete transparency and control of your portfolio Access to high yielding, low risk asset class - pool of individual, business and corporate loans Bank Level Security, regulated and protected Access to prime borrowers - credit checks and profile evaluations get done on all borrowers RainFin does collections and recoveries on behalf of the lender

4 How Do I Get Started? Create your Profile and verify yourself Complete our quick registration process. RainFin requires you to submit your KYC (Know Your Customer) documentation to authenticate yourself. View requirements: Find loans matching your requirements on the primary or secondary marketplace Go to our marketplace and search for a loan matching your requirements. Search on RainFin's secondary market for loans that are for sale. For great returns, look at our corporate loans that are on offer. Transfer Funds To Your Account Transfer funds to your RainFin account. The account is a non interest bearing, Cash Management Systems Account (CMS) with ABSA Bank and regulated under the Financial Advisory and Intermediary Service Act 37 of 2005 (FAIS). The funds remain the property of the lender Funds that have not been offered on loans can be withdrawn at any time. % % Set Up Automated Lending Use our free Automated Offer Agent tool that enables lenders to set up their loan criteria and risk appetite to make automated loan decisions. Multiple offer agents can be set up to act on their behalf and make offers or choose to be notified via of matching loans. Lenders are able to modify their criteria and turn this service on and off. 5 Track your performance and look for the next big deal Monitor the performance of your loans on the RainFin platform. You can also sell your loans on a secondary marketplace. Make offers and start earning. Make offers on loans matching your risk capacity. RainFin will notify you on the outcome of the loan. 4

5 What Are The Minimum Credit Criteria For Borrowers To Borrow? RainFin makes use of a credit score card specifically designed to ensure an accurate assessment of borrowers. Individual Must be a South African citizen with a green bar coded ID book A valid South African Bank Account Between the ages years Must prove a sufficient income A credit check is performed with a credit bureau Any adverse information ie: Judgements, Defaults, Debt Review, Sequestration, Under Administration etc., will negatively impace the loan application. Business Must be registered in South Africa Must be in business for more than 12 months Must have an annual turnover of R1million Must have an asset value of more than R1 million Business and directors must have a good credit rating Must prove a sufficient income A credit check is performed with a credit bureau Any adverse information ie: Judgements, Defaults, Debt Review, Sequestration, Under Administration etc., will negatively impace the loan application. What Is The RainFin Risk Grading And What Does It Mean? RainFIn assigns a risk grading which is on a sliding scale that includes various risk categories based on the borrower's credit history and other factors. The tables below explain the risk grading and levels: RainFin Grade Risk Level Individuals Base rate indicator for 24 months Businesses Base rate indicator for 24 months A Low 9.75% 11.00% a Low Medium 12.75% 14.00% B Medium 15.75% 15.00% b Medium High 17.25% 17.00% C High 19.75% 19.00% c High 24.55% 21.00% Below No Loan No Loans No Loans

6 How Are Interest Rates And Monthly Payments Calculated? Lenders have the ability to make an offer on the loan at any interest rate below the maximum prescribed by the NCR (National Credit Regulator). The interest rate that the lender receives is equal to the rate that he offered on the loan. A monthly service fee will be charged to the lender. The borrower repayment is the weighted average interest rate of all the winning offers received. The monthly payments are fixed and paid on a monthly basis. See below example of a repayment schedule:

7 Introducing The Secondary Market For the secondary market, lenders select the loans they wish to sell and set the asking price they wish to achieve. Potential buyers browse these loans and make an offer to purchase on loans they wish to acquire. RainFin Secondary Marketplace Performs: Loan admin Notify Lenders of offers Generates transfer certificate Collection and disbursement of funds Reporting 1 Lender Wishing To Sell A Loan 3 Lenders Looking To Buy Existing Loans A lender looking to get back his or her capital early lists a current loan at an asking price on the secondary marketplace. 2 The RainFin Secondary Marketplace Other personal, business and corporate lenders select loans on the secondary marketplace according to their risk appetite and make offers on the loan s asking price. The Benefits To The Seller Get capital back early Can sell at a profit Get rid of badly performing loans Low fees If the loan is allowed to be sold, the loan gets published on the secondary marketplace for a limited time. The marketplace connects the sellers with buyers. RainFin facilitates all transactions as well as generating the transfer certificate between the buyer and seller. The Benefits To The Buyer Can buy loan at a discount Low fees Can be part of a loan they missed out on More loan options for lenders

8 Frequently Asked Questions How does RainFin verify a borrower s identity? Are loans secured by any collateral? During the borrower registration process, RainFin verifies the identity number, initials and surname for consumer loans and business name and registration number as well as director s id numbers for business loans. Borrowers also have to go through an online KYC process where individuals have to submit their identity document and proof or residence before their application can be successful. Businesses submit their Certificate of Incorporation issued by CIPC and upload the identity document and proof of address of the director who is applying on behalf of the business. No, presently loans are all unsecured and are not supported by any collateral. RainFin can also not guarantee that loans are repaid. However, we provide all the necessary information on the Borrower so that Lenders can make informed decisions based on the borrower s risk grading and other details as provided. Once a loan is successfully moderated, it will be loaded on the marketplace available for lenders to make offers on. To spread risk, lend small amounts to numerous borrowers with different credit profiles. Are there risks associated with a loan on the RainFin marketplace? Yes. There are risks in the case of a loan defaulting. If a borrower defaults on their repayments, RainFin will assist with collections. However, ultimately the risk lies with the lender. It is important to note though that lenders who diversify their investments, generally carry a lower risk. Diversification ensures that in the event that one borrower defaults, it will not affect a lender s entire portfolio.

9 Frequently Asked Questions Can lenders collect on late payments themselves? How does RainFin make money from the platform? RainFin earns revenue from the fees we charge our borrowers and lenders. We charge borrowers an initiation fee of 2.85% of the loan amount that is paid upon the issuance of the loan. We charge lenders a service fee of 1.14% on the capital and interest. No, RainFin will ensure that all collection is done on behalf of our lenders. We have developed a systematic collections process that involves both a pro-active pre-payment due element and a post default recovery element. The post-default payment includes a number of stages aimed at securing repayment through a restructuring process, or quick identification of non-payment risks. In addition to the initiation fee, the borrower also gets charged a monthly account fee of R35 (individual loans) and R60 (business loans) which goes toward the management of the account, the collection of payments and other administration expenses. All prices include VAT. What will happen if RainFin goes bankrupt? View All Our FAQ s Here: RainFin acts as an agent between borrowers and lenders and the money you lend never goes into a RainFin account, but rather into a Trust Account, which is a Cash Management Systems Account (CMS) with ABSA Bank Ltd, regulated under the Financial Advisory and Intermediary Service Act 37 of 2005 (FAIS). In the unlikely event that RainFin does go bankrupt, another agency will be appointed to facilitate the repayments and collections.

10 Contact Us T: E: W: RainFin is an Authorised Financial Services Provider (FSP45756) and Registered Credit Provider (NCRCP 5587)