Launched in 2016, Brocc makes it possible for you to benefit from the Swedish credit market by lending money to borrowers in Sweden and charging them interest.

All transactions take place through Brocc; you never deal directly with the borrower.

Regulation

Brocc is regulated by Finansinspektionen, Sweden´s financial supervisory authority.

How much do I lend?

To start lending money through Brocc, you need to deposit a minimum of 1,000 USD into your Brocc account.

The smallest possible loan at Brocc is 1,000 USD and the largest is 35,000 USD.

How to get started

1. Open an account with Brocc and follow their instructions to confirm it.
2. Make a deposit of 1,000 USD or more.
3. While logged into Brocc, adjust your settings to let Brocc know what type of loan or loans you are interested in, e.g. when it comes to loan period, risk class and total loan amount.
4. Look at available loans. Once you find one that suits your preferences, it is very easy to invest (i.e. lend money to the borrower) through Brocc. Make sure to make a risk register before you decide which loans to invest in and which to turn down.  This will help you avoid investing in non performing loans.

How long is the payback time?

The length of the payback period varies from loan to loan at Brocc, and you can filter your search to find loans that suit your preference in this regard.

The average loan at Brocc is approved for a payback time of 8 years, but many lenders pay back their loan quicker than stipulated. The actual average payback time for loans at Brocc is currently 4.5 years.

How is the repayment plan structured?

The standard loan offered by Brocc comes with a monthly repayment plan. Each month, the borrower must amortize (pay down the loan) and pay interest, in accordance with the plan.

Is security required to borrow money through Brocc?

No, all loans through Brocc are unsecured loans. Brocc does not offer any pawning service, car title loans or similar, nor do they accept real estate as collateral for loans.

Higher risk – higher interest rate

When a potential borrower hand in their application to Brocc, a credit risk assessment will take place. Some applications are denied, while the rest are sorted into categories A – F based on the results of the assessments. Category A is the best possible credit rating and currently corresponds to an interest rate of 5.50 percent.

Brocc always makes an individual risk assessment for each loan application and set the interest rate accordingly (or deny the application).

Once a potential applicant has received information about interest rates and other terms, it is up to them if they want to accept this and proceed with the process. Some people decide that the interest rate and other conditions are too much and elect to opt-out. Others accept the interest rate and other conditions and allow the process to continue.

The risk categories and their average interest rates

This is the average interest rate paid by borrowers in the six risk categories at Brocc. Always check the exact terms and conditions for an individual loan before you decide to invest, and also keep in mind that the lender doesn´t get the full interest rate – some of it goes to Brocc.

• Risk category A: 5.50% interest rate
• Risk category B: 6.70% interest rate
• Risk category C: 8.70% interest rate
• Risk category D: 12.40% interest rate
• Risk category E: 17.80% interest rate
• Risk category F: 18.99% interest rate

Sources

This article is based on information found on:

• Brocc.se –  Broccs official website.
• https://www.aktiemäklare.com/brocc/ – Review of Brocc provided by a reliable Swedish finance site that I have learned to trust.
• Articles in Affärsvärlden,  Aftonbladet and  Di.