Brock Khanz wrote:
Recently returned player with ~30b in my pocket. As I pursue other ventures I'd like to make some isk, loans are something that has always intrigued me.
How exactly do you get into them?
What 3rd party services are used (saw something about using a player named Grendell for collateral holding?)
How do you vet the person you are potentially lending to?
And finally what are the acceptable interest rates?
If you are lending against collateral you don't need to vet the borrower, just the third party who will be holding the collateral on your behalf. The point of this setup is that there is nothing the borrower can do to scam you in this situation as your exposure is to the third party instead. Your risk, then, is that the third party might scam (as Darknesss did recently). When using a third party the normal interest rates you can expect are between 1.5 and 3% per month (normally the lower end). You can also make direct uncollateralised loans. These are considerably riskier and here you do have to do the vetting work yourself (if this is what you are interested in I can link you a rough guide to making risk assessments). For uncollateralised loans you can expect returns of between 1.5% and about 10% typically, depending on what the borrower is willing to offer and how risky they are perceived to be.
Historically, the main third parties used for large loans (100bil plus) on MD have been Chribba and Grendell. A few other people also have a history acting as third parties, although typically for smaller amounts, including myself, Vaerah Vahrokha (VV) and Elizabeth Norn. Both VV and Grendell are either inactive or have dialled back their activity in this field. As far as I know, Chribba is still doing the large deals.
To find borrowers, either make a post saying you are looking to lend isk and wait for customers to come to you, or keep your eye on MD posts and get in quickly on the 'bluechip' offerings. The riskier, uncollateralised loans you will tend to have a bit more time with as they don't fill as fast because potential lenders and MD regulars do the 'due diligence' vetting work first by asking questions in their threads.