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Great interest rates. Brilliant feeling. Make a huge impact by lending locally.

Earn 6.5% p.a. interest on your capital while helping fund local businesses

We believe in a fair exchange for both Borrowers and Lenders with both getting a great deal: a great interest rate return for our Lenders and access to funding for our Borrowers.

Our Lenders are individuals seeking a great interest rate return on their capital, secured against land or property, whilst benefiting from the knowledge that they are making a huge impact on the local economy.

Capital at risk. No FSCS.

  • 6.5% p.a. interest paid monthly
  • Tax efficient investments possible with our Innovative Finance ISA
  • Secured against UK property
  • No fees to invest in a peer to peer loan
  • Help local businesses, on a national scale
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The Important Bits

What you should know before investing in a peer to peer loan.

Prior to lending into a FOLK2FOLK business loan please ensure you read our Terms & Conditions. Here are a few other things we think you should know:

RISK

Your capital is at risk if the Borrower is unable to repay the loan. Find out more about the risks of peer to peer lending and our loan defaults history.

FSCS

Peer to peer lending is not covered by the Financial Services Compensation Scheme – what do we mean by that?

TAX

How much interest you could earn is affected by a number of factors. Learn more about Interest after Fees and Tax.

ACCESSING YOUR MONEY

If you need to exit your loan investment early you can offer it for sale to other FOLK2FOLK Lenders via our secondary market, but there is no guarantee of a sale.

FEES

There are no fees to enter into a peer to peer loan, but fees apply if you wish to exit your investment early or if you sign up for the IFISA tax wrapper.

Lender Guide

Before investing in a peer to peer loan through FOLK2FOLK read our Lender and IFISA Guide and our Terms & Conditions.

Efficient, happy and stress-free lending

We aim to deliver an efficient, happy and stress-free lending experience. We try to do this by making everything simple and transparent and giving you answers as fast as we can. So as well as a great interest rate and the brilliant feeling you’ll get from helping local businesses, we hope you’ll also have a happier experience!

Apply online Talk to us
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How peer to peer investment loans work

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Talk to us or Apply online

You can apply online, call us or drop into one of our branches. We’ll verify your identity, do our Anti-Money Laundering checks and then you’re ready to become an approved Lender.

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Consider signing up for our IFISA

With our Innovative Finance ISA you could earn your 6.5% p.a. interest tax-free (fees apply).

Learn about IFISAs here

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Get matched to a loan

We’ll contact you once you reach the top of our waiting list with lending opportunities.

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Transfer your funds

We’ll only ask you for your funds once you’ve agreed to an investment opportunity (except ISA Lenders).

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Start earning 6.5% p.a.

What's right for you? Choose your peer to peer lending option

We have three loan options you can choose to invest in. We don’t give advice and you should contact an adviser if you require financial or tax advice when deciding whether a peer to peer loan is right for you as an investment.

Rolling Loan Fixed 1 or 2 Fixed 3, 4 or 5
Minimum investment

£20,000

Interest rate

6.5% p.a.

Loan to Value ratio (LTV)

Max. LTV 60%

Eligible for Innovative Finance ISA (IFISA)

Yes
Fees apply

Investment term
  • 6 months minimum but may continue for up to a maximum of 5 years at the Borrower’s choice.
  • The Borrower will give 3 months’ notice to repay the loan.
  • 1 or 2 years.
  • If the Borrower wants to extend, you can choose whether to remain in the loan for the period chosen by the Borrower up to a maximum of 5 years.
  • The Borrower may choose to repay your loan before the end of the term. In which case you’ll receive 3 months’ notice of this PLUS 3 months’ interest.
  • 3, 4 or 5 years.
  • If the Borrower wants to extend, you can choose whether to remain in the loan for the period chosen by the Borrower up to a maximum of 5 years.
  • The Borrower may choose to repay your loan before the end of the term. In which case you’ll receive 3 months’ notice of this PLUS 3 months’ interest.
Exiting your investment
  • When the Borrower chooses to redeem their loan.
  • Or you may offer your loan for sale via FOLK2FOLK’s secondary market ‘MarketPlace’ after 6 months from initial investment. Fees apply.
  • At redemption date
  • Or you may offer your loan for sale via FOLK2FOLK’s secondary market ‘MarketPlace’ after 6 months from initial investment. Fees apply.
  • At redemption date
  • Or you may offer your loan for sale via FOLK2FOLK’s secondary market ‘MarketPlace’ after 6 months from initial investment. Fees apply.
Talk to us
Rolling Loan
Minimum investment

£20,000

Interest rate

6.5% p.a.

Loan to Value ratio (LTV)

Max. LTV 60%

Eligible for Innovative Finance ISA (IFISA)
Investment term
  • 6 months minimum but may continue for up to a maximum of 5 years at the Borrower’s choice.
  • The Borrower will give 3 months’ notice to repay the loan.
Exiting your investment
  • When the Borrower chooses to redeem their loan.
  • Or you may offer your loan for sale via FOLK2FOLK’s secondary market ‘MarketPlace’ after 6 months from initial investment. Fees apply.
Fixed 1 or 2
Minimum investment

£20,000

Interest rate

6.5% p.a.

Loan to Value ratio (LTV)

Max. LTV 60%

Eligible for Innovative Finance ISA (IFISA)
Investment term
  • 1 or 2 years.
  • If the Borrower wants to extend, you can choose whether to remain in the loan for the period chosen by the Borrower up to a maximum of 5 years.
  • The Borrower may choose to repay your loan before the end of the term. In which case you’ll receive 3 months’ notice of this PLUS 3 months’ interest.
Exiting your investment
  • At redemption date
  • Or you may offer your loan for sale via FOLK2FOLK’s secondary market ‘MarketPlace’ after 6 months from initial investment. Fees apply.
Fixed 3, 4 or 5
Minimum investment

£20,000

Interest rate

6.5% p.a.

Loan to Value ratio (LTV)

Max. LTV 60%

Eligible for Innovative Finance ISA (IFISA)
Investment term
  • 3, 4 or 5 years.
  • If the Borrower wants to extend, you can choose whether to remain in the loan for the period chosen by the Borrower up to a maximum of 5 years.
  • The Borrower may choose to repay your loan before the end of the term. In which case you’ll receive 3 months’ notice of this PLUS 3 months’ interest.
Exiting your investment
  • At redemption date
  • Or you may offer your loan for sale via FOLK2FOLK’s secondary market ‘MarketPlace’ after 6 months from initial investment. Fees apply.

Accessing your investment money

By investing £20,000 or more via FOLK2FOLK, you become an important part or our Local Lending Movement; helping local, rural and entrepreneurial businesses access the funding they need to get off the ground, grow and develop. If you find that you need your investment funds back sooner than the end of the loan term you can offer all or part of your loan investment for sale to other FOLK2FOLK Lenders via our secondary market. Fees and conditions apply.

However, there’s no guarantee that anyone will buy your loan investment which means you’ll need to remain in the loan until the Borrower redeems.

Who you’ll be lending to

Through FOLK2FOLK you’ll be helping to support local, rural and entrepreneurial businesses. From farmers seeking to diversify, property renovators or developers, country hotels and pubs, right through to manufacturing businesses, yoga studios and cafés. You’ll be providing the finance to start or grow their business, buy an asset or boost their working capital. We’re choosy but fair and turn down Borrowers who don’t meet our criteria. We undertake standard credit referencing, status checks, due diligence, check asset ownership and often hold a personal meeting prior to loan approval. We also pass applications through our Credit Risk Committee who use their expertise and collective knowledge to assess the proposal.

It’s important, however, that you do your own due diligence and don’t rely solely on FOLK2FOLK’s review when deciding to invest into a loan on the FOLK2FOLK platform.

"Very easy to lend my money - no complicated jargon, what you see is what you get."
C. Rimmer, Lender
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