Frequently Asked Questions

General P2P Questions

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Bullion Secured Peer-to-Peer loans (P2P) is a new way of connecting an individual borrower who owns bullion with lenders, without using traditional banks to obtain a secured loan. 

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Silver Bullion is the agent that provides the infrastructure, custody services, management and platform to allow loan contracts to be entered into between lenders and borrowers based on their agreed terms. We then act as facility agent by collecting and disbursing funds between the parties and locking the bullion as collateral.

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Silver Bullion is not required to be licensed and/or regulated by the Monetary Authority of Singapore (“MAS”) nor any other regulators in or outside Singapore. 

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Unlike other P2P lending platforms, Silver Bullion’s P2P loans are 200%* backed by the borrower’s bullion therefore significantly minimizes the risk exposure of lenders.

Other P2P lending platforms also does not allow lenders to choose borrowers and or loan terms while Silver Bullion’s P2P loans allows lenders to set their own loan terms.  

*Only the 1-month loans can be funded with a lower ratio of 170% (or about 60% loan to value ratio)

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We charge an administration fee of 0.5% per annum of the principal amount from both the lender and the borrower for every loan contract that is created. 

Please visit our Schedule of Charges page for more information.

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Our P2P lending platform matches borrowers directly with those that have liquidity and who are comfortable to lend with the borrower’s bullion as collateral.

Those who wish to lend against their gold and silver submit a borrowing request, which allows him/her to set the currency, amount, interest rate and duration. The borrowing request is then posted on our platform for potential lenders to accept.

Likewise, lenders can choose to accept an existing borrowing request, or submit a new lending offer and customize their own terms.

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Our P2P lending platform allows both lender and borrowers to set the loan amount, currency (SGD/USD), preferred interest rate and loan duration (1 month, 6 months, 12 months or 24 months).

Lenders can also specify whether a partial fill is allowed for the lending offer. Allowing a partial fill means that lending offer can be filled by multiple borrowers or multiple borrowing requests with smaller principal amounts until the full lending offer amount is filled. 

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There are 4 loan start date, on the 1st, 8th,15th and 22nd of every month. Please refer to our Loan Contract Schedule for more information.

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For 1 month, 6 months and 12 months loan contract, interest will be repaid together with loan principal at the end of the term of loan. For 24 months loan contract, interest will be paid out yearly.

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Yes. The interest rate set by either the borrower or the lender is fixed for the entire duration of the loan.

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There are minimal risks for both borrower and lender. Borrower does not lose ownership of the bullion through collateralization but a lien is placed on the bullion in favor of the lender. The collateralized bullion is stored securely at The Safe House and retain all the protective features of S.T.A.R. Storage.

The lender’s loaned funds are always fully backed by physical bullion stored under S.T.A.R. Storage. We typically require the borrower to pledge bullion valued at least twice (200%*) of the loan amount when submitting the loan request. The collateralized bullion is re-valued every five minutes based on spot prices. Should the value of the pledged collateral fall during the loan tenor to 110% or less and margin calls remain unfulfilled, a liquidation sale as per user agreement will occur to ensure the lender’s loan is always fully covered.

*Only the 1-month loans can be funded with a lower ratio of 170% (or about 60% loan to value ratio)

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The P2P accounts are in Singapore because of the exclusive Singapore jurisdiction aspect of Silver Bullion. The P2P client account will be with DBS bank in Singapore.

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Yes, make a usual bullion order and specify under comments that you want the funds to come from your P2P account balance. We will then transfer the balance from the P2P account to the SB account to pay for the bullion purchase. This can also be done for storage fees. 

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Click here to download a copy of the User Agreement.

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You may call us during our office hours at +65 6100 3040, or you may e-mail us at [email protected]. We aim to respond to e-mail queries within one business day.

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Silver Bullion is not a financial institution under Singapore law and our P2P system does not change that. Silver Bullion is also not a MoneyLender. Our role is merely matching lenders with borrowers and providing a framework for this to happen securely while taking a small fee for the service.

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P2P Lending has nothing to do with bullion Leasing. Bullion leasing is a practice whereby an institution leases the bullion they are storing on behalf of customers to third parties for additional income. This is legal, for operators of unallocated or allocated storage systems as, in such systems, the storage customer does not have legal title ownership of their bullion. Customers will typically receive an "IOU" document stating that something is owed to them but in reality, it will be recorded as liability under the operators balance sheet.

At Silver Bullion, it is impossible to do such bullion leasing because we always transfer legal title ownership of the bullion to customers. We do this by packing the bullion into uniquely serialized parcels whose ownership is then transferred through a sale invoice.

The invoice is an official document, under Singapore Law, that document the ownership of specific serialized parcels was transferred to the new party. The bullion will then be removed from our balance sheet which makes bullion leasing impossible as it requires ownership.

Borrowers

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To be able to borrow against your bullion, you must have an approved S.T.A.R. Storage account and own at least one bullion parcel stored at S.T.A.R. Storage. If your S.T.A.R. Storage account was approved before the official public launch, you must also download and sign our new User Agreement to be able to access the P2P page.

Please visit our FAQ on storage for more information about the S.T.A.R. Storage program.

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You can borrow up to 50%* of the value of your existing S.T.A.R. Storage parcel.

For example if you want to borrow $10,000 USD, your pledged parcel(s) should be valued at least $20,000 USD at the time of your request.

The value of the bullion in the S.T.A.R parcel is updated every five minutes based on spot prices. 

*For 1-month loans, you can borrow up to about 60% of the value

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The minimum loan amount is $4,000 USD or $5,000 SGD. There is no maximum borrowing limit, however it should be in multiples of $1,000.

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Currently, borrowers can borrow in SGD or USD.

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Currently, borrowers could borrow for 1, 6, 12 or 24 months.

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You can set your own interest rate when submitting a borrowing request or can match an existing lending offer if the terms are acceptable to you.

You may refer to the P2P lending platform to check the benchmark interest rate determined through bid and offer prices set by other borrowers and lenders.

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Aside from the interest charge for the loan, Silver Bullion will collect 0.5% p.a. administrative fee of the loan amount.

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Please click here to find out how to submit a loan request. (View the "HOW TO GET A LOAN" section)

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Please visit the Offer & Request Listing page to view the existing lending offers that are available to you.

Click on the View button to inspect a lending offer. If you like the offer, click Next to view and agree to the terms and conditions of the prospective loan contract.

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Once you submit a borrowing request, it will be listed on the P2P lending platform for potential lenders to match. Your borrowing request will stay active until it is cancelled by you or if it remains unmatched during the current bidding period. The preference can be selected when submitting a lending offer.

Once your borrowing request is accepted by a lender, a legally binding contract is created based on the agreed terms.

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It can vary; normally it is for a week. Please refer to our Loan Contract Schedule at the end of this document for more information.

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The system will automatically notify you via e-mail and secured notification when your borrowing request is matched.

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No signature from the borrower and lender is needed for any loan contract created in the P2P lending platform. By signing the P2P User agreement, both lenders and borrowers agrees to be legally bound to future Loan Contract they will enter in the P2P lending platform.

This is made possible by Singapore’s Electronic Transaction Act, which provides legal recognition of electronic records as long as the contractual parties have previously agreed on the terms and there is a system that allows this agreement to be interlinked to subsequent agreements (be it written or electronic).

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You will not lose ownership of your bullion but a lien is placed on the bullion in favor of the lender. This is similar to a mortgage on real estate. While the lien exists, the collateralized bullion cannot be re-loaned, sold nor taken delivery of by the lender.

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Yes. Both the borrower and lender will be identified by their 8 digit anonymous S.T.A.R. ID when using the P2P lending platform.

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Your loaned amount will become available in your P2P account on the Loan Start date. You can then have the funds wired to your linked bank account, use them to purchase bullion or use them for P2P loan purposes.

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In general, the proceeds of a matched loan contract will only be available to borrowers at the Loan Start date. The borrower may however apply for a “Loan Advance” to have access to funds within a business day.

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Yes, you can make an early repayment of the full loan amount including full interest, and any outstanding fees.

There will be no penalties charged.

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In general, borrowers must pay off the loan in full by due date. Failure to do so will result in penalties in accordance with our late payment policy.

However, the Borrower may, as an alternative, apply for a new loan before the Loan Maturity date that will, if accepted by lenders, result in a roll-over of the previous Loan Contract.

Under a loan roll-over scenario, the Borrower need send funds to pay off the old loan (if the new loan is sufficient to cover the amount due) or the Borrower only needs to partially pay a portion of the old loan not covered by the new loan contract.

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Failure to pay the outstanding balance once due will result in a default of the loan contract and a late penalty charge will be imposed.

Please refer to the User Agreement for the full policy details when you default on a loan (Events of Liquidation). 

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Within Singapore, you can transfers funds via checks, FAST, MEPS, GIRO and international wire transfer (SWIFT) to our DBS SGD and USD bank accounts. Customers with bank accounts in the US can use ACH or Fedwire domestic wire transfers to our payment partner’s bank account in Bank of New York Mellon.

Please see the first page of this document to view payment instructions.

Lenders

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Anyone with an approved S.T.A.R. Storage account and a cash balance in their P2P account can be a lender. If your S.T.A.R. Storage account was approved before the official public launch, you must also download and sign our new User Agreement to be able to access the P2P page.

Please visit our FAQ on Storage for more information about the S.T.A.R. Storage program.

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Currently, lenders can lend in SGD or USD.

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The minimum amount you can lend is $3,000 SGD or the USD equivalent. There is no maximum limit on the amount you can lend, however it should be in multiples of $1,000.

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By default we require funds to be in the lender’s P2P account before allowing you to post a lending offer. This ensures that funds are immediately available to the borrowers at Loan Start date.

However, we may, on a case-by-case basis, provide an "Unfunded Transaction Limit” to lenders which will allow them to make a lending offer without funding their account in advance.

Once the unfunded lending offer is accepted by a borrower, you will need to fund your P2P account immediately to ensure that funds are in your account before the Loan Start date of the contract. Failure to fund the P2P account before the Loan Start date will result in penalties in accordance with our late payment policy.

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The Unfunded Transaction Limit (UTL) is the lending offer amount that you can submit in excess of your P2P Account Balance. The UTL allows you to find a borrower without needing to send cash first.

For example, if you have $40,000 SGD as your P2P account balance and your UTL is $70,000 SGD, you can lend up to $110,000 SGD (one or more loans) at any point in time.

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The lending offer can be filled by multiple borrowers or with multiple borrowing requests with smaller principal amounts until the full lending offer amount is filled.

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Silver Bullion keep customer’s fund for the P2P with DBS Bank Singapore. Singapore has a strong banking foundation and has never had a banking default. DBS has also been recognised as the Bank of the Year, Asia by The Banker, a member of the Financial Times Group, and also voted the Best Bank in Asia-Pacific by Global Finance. It is also name "Safest Bank in Asia" by Global Finance for six consecutive years from 2009 to 2014. Thus, customer can rest assure that their funds are safe. 

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Once you submit a lending offer, it will be listed on the P2P lending platform for potential borrowers to match. Your lending offer will stay active until it is cancelled manually by you or if it remains unmatched during the bidding period. You can choose either option when submitting a lending offer.

Once your lending offer is matched by a borrower, a legally binding contract is created based on the agreed terms.

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It can vary; normally it is for a week. Please refer to our Loan Contract Schedule at the end of this document for more information.

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The system will automatically notify you via e-mail and secured notification when your lending offer is matched.

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No. Both the borrower and lender will be identified by their 8 digit anonymous S.T.A.R. ID when using the P2P lending platform. 

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The creation of security interest over the borrower’s parcel(s) is covered under the User Agreement. With the borrower agreeing to the User Agreement, a security interest over the parcel(s) will be created in favor of the lender one there is a loan match. Please note that the borrower's parcel(s) is, and for the entire tenor of the loan will be, under our custody and will therefore result in a perfected security interest over these parcel(s).

No other form is necessary to enforce this security interest over the parcel(s).

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No. The entire P2P loan arrangement has been structured to significantly minimize the credit risk exposure of lenders, therefore in our view, an additional financial guarantee (insurance coverage) will unnecessarily drive up the cost without really adding tangible benefits and/or additional protection. 

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Your loaned amount will become available in your P2P account on the Loan Due date. You can then have the funds wired to your linked bank account, use them to purchase bullion or use them for P2P loan purposes.

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Please click here to find out how to submit a lending offer.

On the page, click on C. IF NO, THEN MAKE YOUR OWN LENDING OFFER AND WAIT FOR A BORROWER TO ACCEPT YOUR TERMS.

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Please click here to find out how to accept a borrowing request.

On the page, click on B. IF YES, THEN ACCEPT THE BORROWING REQUEST.

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Within Singapore, you can transfers funds via checks, FAST, MEPS, GIRO and international wire transfer (SWIFT) to our DBS SGD and USD bank accounts. Customers with bank accounts in the US can use ACH or Fedwire domestic wire transfers to our payment partner’s bank account in Bank of New York Mellon.

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Early maturity of a loan is not allowed as stipulated in the contract.

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  1. Log in to your account
  2. Click on “LOANS” tab
  3. Under “Lender”, select “Manage Lending Offers”
  4. Select the Lending Offer to be cancelled
  5. Click on “CANCEL OFFER”

Please note that cancellation of Lending Offer will not be allowed once it is filled by a borrower and a loan contract is created. 

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If the borrower defaults or is late in fulfilling their payment commitments, the Sweeper Fund (subject to fund availability) will provide temporary liquidity so that you will still receive your fund on time. The Sweeper Fund is a kind of overdraft protection to provide automatic short-term funds.

We will charge the borrower a late penalty of 1.5% of the outstanding balance on the due date and every subsequent loan start date, until the full amount is repaid. The funds repaid by the borrower will go back to the sweeper’s fund. Should the collateral value fall to or below 110% of market value, we will sell / liquidate the collateral to protect the Lender

Please refer to the User Agreement for the full policy details when you default on a loan (Events of a Borrower Default). 

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A liquidation event happens if anytime during the loan term, the value of the borrower’s collateral falls to 110% or lower. Once this happens, the P2P system will automatic initiate a sellback of the collateral parcels which will ensure that the lenders will not receive anything less than the full principal and interest of the loan contract.

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The obligation to pay taxes on interests earned varies from one jurisdiction to another. You should seek professional tax advice from a qualified tax accountant or tax attorney for questions on tax reporting and tax payment obligation of the jurisdiction that you are subject to.