Loanch announced its largest Loyalty Programme update to date. The changes add two status tiers, increase bonus rates across existing tiers and automatically upgrade current investors.

What is changing

Two new status tiers

The additional tiers extend the programme for investors with larger portfolios and introduce new thresholds for bonus returns.

Higher bonus rates

Existing tiers receive increased bonus rates, while current investors are moved automatically to the corresponding updated status.

What this means for investors

The update may increase nominal returns for investors who meet the programme requirements. Any benefit should be compared with the capital required and the concentration risk created by placing more money on one platform or with one group of lenders.

Investor Impact

Return: potentially ↑

Higher bonus rates may increase nominal returns.

Access: ↑

Two additional tiers create more steps within the programme.

Concentration: caution

Depositing more solely to reach a higher status may increase exposure to Loanch.

Automatic upgrade

Existing investors do not need to apply again for the corresponding tier.

Important: A Loyalty bonus does not offset credit, platform or liquidity risk. Do not increase an investment solely for a higher bonus rate if that would breach your diversification limits.

Source: Loanch