How does that work
Smartika is the first platform with which I ventured, is Italian and lends only in Italy. Obviously in the beautiful country has encountered many legal and bureaucratic difficulties and had to register as a financial institution supervised by the Bank of Italy to work. Interest percentages are around 6%-10% depending on the risk profile. The amount of loans is more than enough but unfortunately the interests are quite low. What prevents the raising of rates is the anti-usury law that sets the maximum loan rate allowed today to 15% (varies according to the trend of the lending market). It goes without being that the platform cannot offer comparable gains to other European competitors.
On Smartika There is an automatic reinvestment function but it does not allow many customizations.
Smartika does not provide a real secondary market but only a quick return function.
None of the loans present on Smartika is protected by repurchase guarantee (or buyback). However, there is a lender protection fund in which Smartika inserts a percentage of the proceeds of all loans in order to be able to repay at least part of the capital lost by lenders.
- Guarantee of repurchase of expired loans? No, only a fund for partial refunds
What I Like
- Italian platform
- Very reliable since it is a financial institution guarded by Bnaca of Italy
- A precursor, has been operating for 10 years
What I don’t like
- Low-competitive rates for the European market
- Absence of buyback protection
Smartika has interesting profiles but unfortunately its great defect are the rates promised to creditors who do not approach even remotely to 12%-14% that offer the other European companies. She has however from her a solid track record and years of experience on the Italian market. I do not feel to recommend it but not to recommend it in short. For my risk appetite it is too conservative but it is a very personal judgement.
Smartika unfortunately does not offer any sign-up bonuses at the moment.