Frequently Asked Questions
Why does InvestEd only lend to junior and senior students?
Research shows that college students who are at most risk of dropping out are in their last two years of college. Additionally, there is also less risk involved in lending to junior/senior students since they are less likely to shift and have a detailed attendance and record of grades. Lenders are also able to be repaid in less time.
How do I ensure the student is using the money for education?
Once InvestEd gets the total funding required for a student, it pays the tuition directly to the school, pays the dorm/housing fees directly to the landlord and disburses stipend on a monthly basis to ensure that spending is regulated. Receipts of every payment to school, dorms and stipend disbursement are provided to our lenders.
When do I get repaid?
Students start repayment when they start working and/or after a licensure exam, which can sometimes be before graduation or at most 3 months after graduation. Lenders are then repaid bi-monthly over 12 to 36 months or more, depending on the student’s loan amount and starting salary. Each lender will be provided an amortization schedule after depositing their pledge.
Can I pick which school and degree courses I can lend to?
Lenders can definitely mention their degree and school preferences on our Lender Registration Form. However, InvestEd does not guarantee accommodation of your request. It should be noted though that InvestEd is currently only open to student loans in select schools and degree courses only.
What happens if the students cannot pay?
All our students are required to have guarantors. We also ask for a proof of income so we can ensure that guarantors have the ability to pay. Additionally, we also have the legal systems in place since we do not loan to any students below 18 years old (i.e. Brgy. Subpoena and Small Claims Court). In the case of death, our loans are also insured so that the lender is covered. If you are interested to become a lender, you may contact us to receive our entire repayment and collection process and risk mitigation manual.
How does InvestEd facilitate repayment?
InvestEd is committed to seeing the students pay the entire amount of the loan through a six-point approach to repayment:
- Multiple Matching: InvestEd does its best to match you with at least 3 borrowers, instead of just one, in order to reduce risk.
- Credit Investigation Technology: We have developed our own credit scoring and profiling algorithm that uses artificial intelligence in order to reduce credit risk.
- Employer network: We partner with employers to increase placement opportunities for our borrowers and to have an automatic salary deduction scheme that makes repayment convenient.
- Investee Success Program: All our student borrowers undergo a unique program, which seeks to prepare them for repayment and future success. It includes training and personal coaching on core employability skills (i.e. job hunting, resume and cover letter writing, acing a job interview), in-demand soft skills (i.e. life planning, resiliency, team work, grit, failure) and financial literacy. The goals of this program are to ensure that our Investees acquire a job faster than the national average of 4.25 months; have higher than the average income; are able to retain and advance their career at a shorter time; and are able to navigate budgeting and saving for the repayment of their loan.
- Shared Future Plan & Rebates: We motivate our students with rewards systems. The shared future plan enables student borrowers with good repayment records (no missed payments and/or defaults) to gain loan priority at InvestEd for their sibling or relatives in the future. Additionally, those who complete repayment before the deadline are provided certain perks.
- Convenient Repayment Gateways: We make repayment convenient for fresh graduates by providing many options to ensure full accessibility. We have auto debit on their bank accounts, online banking, over the counter banking, bayad centers (pawnshops, LBC, etc.) and PayMaya.
How much do I earn?
Each investment at InvestEd earns 35% per annum. This interest earning is split 50-50 between InvestEd and the Lender. After this split and under our repayment format of diminishing balance, lenders may earn between 10-15% per annum. This revenue sharing model funds the scaling initiatives of InvestEd so that we can serve more students and lenders in the future. If you are interested to lend, InvestEd will provide a sample repayment schedule and computation of returns and fund growth rate.
How will I know the progress of my students and the status of my funds?
InvestEd gives all of its lenders a monthly report that contains updates on the status of funds, academic, employment and repayment progress of students and receipts for every disbursement.
What is the minimum lending amount and can it be given in tranches?
The minimum amount is Php 100,000 and can be deposited in multiple tranches. The tranches will be decided by InvestEd, based on the disbursement needs of the students.
When will I get a borrower(s) assigned to me?
As soon as your pledge is made, InvestEd will find you a match. Typically this does not last long, but in the case of non-peak seasons (i.e. enrollment is done), InvestEd is given up to six months (the length of a semester), to find you a match.
Can lenders communicate and interact with students?
We allow our lenders to communicate and interact with our students only under the supervision of InvestEd. All forms of communication must be coursed through InvestEd and interactions may only be possible during Investee Success Program sessions. This is applicable until the loan is repaid. Afterwards, the lender and student have the freedom to communicate and interact freely.