Welcome to Lending Deposit!
Lending Deposit is the trade name of Marketplace Lending Investments Ltd. (MLI), a UK registered company, based in 1st Floor, 4-5 Bonhill Street, EC2A 4BX, London, UK. In the following, Lending Deposit refers to the company MLI, as well as this website.
These Terms and Conditions, together with the individual information in the Account System form the Lending Contract.
These term and conditions refer only to the use of this website and the Lending Deposit “time deposit” product. The relationship between Lending Deposit and its Investment advisory and management clients are governed under separate terms & conditions.
- The content of the pages of this website is for your general information and use only. It is subject to change without notice.
- Your use of any information or materials on this website is entirely at your own risk, for which we shall not be liable. It shall be your own responsibility to ensure that any service or information available through this website meet your specific requirements.
Every effort is made to keep the website up and running smoothly. However, Lending Deposit takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
Through this website you are able to link to other websites which are not under the control of Lending Deposit. We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Definiton of Terms
In the following, any natural or legal person, who has successfully opened an account with Lending Deposit is an account holder and called “client”. An account is opened successfully, if Lending Deposit has approved the account application submitted online.
An “account” is the online representation of one or several loan(s), which the client grants to Lending Deposit. It shows when interest and principal payments are due, it allows to modify the loan terms, etc.
The “equity cushion” is defined as Lending Deposit’s stock holders’ equity plus any loan capital subordinated to Lending Deposit’s clients’ claims.
The minimum guaranteed equity cushion is 20% of total assets. Lending Deposit calculates the equity cushion monthly and makes this information available to its clients through the online account system. If the equity cushion should fall below the guaranteed minimum in one month, the following will happen:
- No new lending commitments are being accepted.
- Lending Deposit must take actions to bring the equity cushion back to or above the agreed level in the following month (by reducing indebtedness or injecting equity).
Should the equity cushion remain below the guaranteed minimum for a second consecutive month, Lending Deposit will take on no new debts anymore and liquidate its assets in a way to ensures maximum repayment in interest and principal to its clients.
A Lending Deposit time deposit is a loan granted by the client to Lending Deposit. It has the following characteristics:
- Fixed interest rate: The interest rate is fixed at the time of entering into the lending agreement. Currently the interest rate depends on the time commitment and ranges between 2% and 5% p.a. (per annum)
- Monthly interest payments: Interest is paid monthly, at the latest 5 working days after the end of each calendar month. The interest payment is 1/12th of the agreed yearly interest rate. I.e., an agreed interest of 3% p.a. will pay a monthly interest rate of 0.25%. Payments are rounded to the nearest cent. The effective interest rate agreed is this – rounded – monthly figure. Thus, slight rounding differences can occur between the annual percentage rate shown and the actual, contracted rate which is the monthly interest rate rounded to full cents.
- Fixed duration: The full principal value of the time deposit will be repaid at the end of the chosen time deposit’s duration. Early repayment is in principal not possible. However, a client requiring funds urgently can contact Lending Deposit to request an early repayment. If liquid funds are available, early repayment requests can be honored by the full discretion and under the terms offered by Lending Deposit.
- The whole principle amount is transferred to the client’s Lending Deposit “cash account” on the last day of the duration of the time deposit.
- No interest is due during the calendar month, in which the time deposit contract was entered into. I.e. interest starts accruing from the first day of the subsequent month of entering into the lending agreement. I.e. if a customer pays in funds on the 20th and enters into a time deposit agreement on the 25th, no interest will be paid during that month, interest will start accruing from the 1st of the subsequent month.
- Interest payments are fixed and guaranteed with the full equity cushion of Lending Deposit.
- Lending Deposit guarantees with its full equity cushion the repayment of the principal investment on the agreed due date.
All funds paid to Lending Deposit by clients are held in the clients’ Lending Deposit cash account. Funds held there constitute a loan of the client to Lending Deposit with the following characteristics:
- Short-term loan: Lending Deposit guarantees with all its assets the full repayment of the funds in the client’s cash account within 3 business days of receipt of the client’s withdrawal request
- No fees: Lending Deposit and its banks will not charge clients any fees for any withdrawals to their bank accounts. The client’s bank may or may not charge for the receipts of such funds. No other commissions are charged or paid.
- No interest: No interest is paid for funds held in a cash account.
Our lending process has two steps: First, you pay-in funds into your Lending Deposit cash account, and then you commit those funds for a specific time, entering into a Lending Deposit time deposit contract. Legally, these two steps represent two different lending contracts as defined below:
Cash Account Lending Contract
Clients pay-in funds into their Lending Deposit cash account by transferring money to the bank account given in the account system. In doing so, the client agrees to lend those funds to Lending Deposit under the conditions mentioned above in the description of “cash account”.
All interest payments and capital redemptions are being credited to the respective client’s Lending Deposit cash account. Clients can withdraw any balance held in their cash account at any time.
Time Deposit Lending Contract
By submitting the form “New Time Deposit” from within the Lending Deposit account system, the client first cancels – for the sum committed – the existing lending contract between him/her and Lending Deposit and agrees to enter into a new lending contract under the terms described above under “time deposit”.
Therefore, right after submitting the form to enter into a new time deposit, the funds committed are being deducted from the client’s cash account and the client’s time deposit account is credited with a new time deposit of the chosen characteristics (nominal value, duration, interest rate).
There are no fees or commissions charged or due in connection with this lending contract