25 June 2020

[P2P] What does this new player microLEAP has to offer?

Peer-to-peer (P2P) financing in Malaysia, although it is not new in Malaysia, the industry still has a long way to go. Another player - microLEAP - comes into the picture recently.

Interestingly, the new player is 
the only peer-to-peer (P2P) financing operator in Malaysia that focuses on the microfinance sector, just in time when many local microenterprises struggling to survive the Covid-19 pandemic. (That's the reason why 'micro' has to be inserted as the company's name?)

Having said that, microLEAP provides both shariah-compliant and conventional financing from RM1,000 to RM50,000 to microenterprises. It aims to fill the financing gap for micro-enterprises in Malaysia, which may not be able to apply for loans from banks due to their lack of credit history.

What about investors?
With a minimum of RM50 per note, retail investors can invest in the P2P financing notes via the microLEAP platform, in search of potential higher return/interest.

To further enhance the P2P Investors’ experience by gamification, with the League of Extraordinary Investors, investors may gain points depending on the amount, tenor, and the number of Investment Notes they invest in. These points will lead to lower fees as investors move up the rankings of Rookie, Apprentice, Champion, and Sifu.

How microLEAP minimize the Default risk?
As all of us know, the most concerning part from investors' angle are the default risk. MicroLEAP has put in two methods:
  1. Group financing module
    ~ based on the Grameen model of group lending
    ~ five issuers in the same community will come together as a group
    ~ If one issuer defaults on payment, it will impact the credit rating for all the issuers within the group
    ~ Thus, this encourages greater accountability
    ~ The issuers must know each other and come from the same community

  2. Credit algorithm
    ~ Experian which provides credit rating data
    ~ And, a psychometric testing by a partner company

Free Personal Accident insurance?
Yes. The platform also provides free PA coverage to the key person of the business, insuring them against accidental death and permanent total or partial disablement. Of course, this serves as an 'investment protection' for investors as well.

microLEAP - How to become a P2P Investor

One last thing to all of our readers here.

All new P2P Investors can receive *RM10 Free Credit to invest on the microLEAP platform! (T&Cs may apply)

Click this link to create an account today
Use Referral Code: 302031


You should read all of our P2P related articles here:

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