The team at UK-based P2P lender Blend Network notes that many investors active on their platform will know that they have an AutoLend feature that enables lenders to make automatic investments.
Blend Network explains in a blog post that these auto investments can be made according to the criteria that the users select, like interest rate and loan maturity. The P2P lending platform recently addressed important questions around this feature and how to use it in an effective manner.
While explaining how AutoLend can be used via Blend Network, the company writes that it’s a feature that enables lenders to choose a fixed amount to lend, allowing them to spread their available funds across several different loans.
For instance, if you have a total of £10,000 that you intend to invest, you may decide to diversify your portfolio by choosing to lend £1,000 across 10 different loans, Blend Network explains. The company also mentions that you may lend any amount “greater than or equal to £1,000.”
To to so, AutoLend will ask you to choose your own lending criteria like interest rate and loan maturity, Blend Network noted while adding that after AutoLend is activated, AutoLenders are able to place in a queue and can lend on “a first come first served basis on all loans that meet their lending criteria.”
Going on to clarify whether anyone may use AutoLend, Blend Network states:
“Yes, anyone who has had their Blend Network lending account activated can use AutoLend to lend on loans. However, please note that activating AutoLend does not always guarantee you lending on a loan, even if that loan meets your selected criteria. The reason is that some loans may be oversubscribed (i.e. when the amount on AutoLend is larger than the loan amount). In such instances, lenders will be able to lend based on their position in the AutoLend queue.”
While addressing a question about whether AutoLend may be activated at any time, the company adds:
“Yes, AutoLend can be activated at any given time. However, if you activate AutoLend during the 24 hours after a loan has been listed and before the loan opens for funding, you will not be lending on that loan – your activation will come into effect starting from the following loan.”
Addressing another question about whether users may disable AutoLend at any time, the company notes that yes, AutoLend may be disabled “at any given time.” But if you disable AutoLend during the 24 hours after a loan is listed and before the loan has opened for funding, then you will “still be lending on that loan.”
Blend Network points out that “every time you disable and then reactivate AutoLend, you will lose your place in the AutoLend queue and will return to the end of the queue.”
Going on to comment on whether there any minimum or maximum loan amount that may be invested via AutoLend, the firm notes:
“The minimum amount investors can invest through AutoLend is £1,000, the same amount as the minimum investment by lending manually. The maximum amount lenders can lend through AutoLend varies on a case-by-case basis. Blend Network can cap the maximum all lenders can lend through AutoLend on some loans – especially when a loan is oversubscribed.”
Responding to a question about how much it costs to use AutoLend, the company reveals that the feature is free and “there are no fees to use AutoLend.”
Users may activate AutoLend via Blend Network by logging into their account using their login credentials. Users will be directed to their Dashboard where they can click on Autolend and enter the amount they intend to lend per loan, “in multiples of £1,000.”
For more details on how to do this, check here.