Investing in loans

Žltý melón offers you various types of investments and loans to choose from, as well as different forms of security and approaches to help you manage and protect your investment portfolio. Everything you need has already been prepared for you, making it easy to decide on the most profitable investing strategy that is tailored just for you.

Standard Loans

Invest directly in the individual loans of your choice.

Investment in individual loans is arranged via loan auctions where you choose the borrower and set the conditions for funding their loan. This is done by making an investment offer to fund their loan, where you list the amount and the interest rate for your investment.

Žltý melón provides various types of credit and loan auctions to ensure the best match is found for each investor and borrower. Every loan applicant is thoroughly verified and their creditworthiness is assessed carefully to minimise the risk to investors and likelihood they will fail to repay their loan.

You are provided with all the information you need to make your investment decisions and you can also ask the applicants further questions if anything is unclear and to ensure you fully understand their loan application before you invest.

You can learn more about standard loans here.

Loans with an extra guarantee

Investing at unbeatable rates with an extra guarantee on your investment.

Invest your money into short-term real estate finance at an atractive interest rate paid directly into your Žltý melón investment account. We offer our clients a unique opportunity to invest in safe and profitable loans taken out by people to finance the purchase of their new home.

Investment in these loans are secured with a buyback guarantee, provided by a well-known property developer, as well as the real estate itself, which ensures that your investment can be realised as cash at any time..

You can learn more about our guaranteed investment opportunities here.

Secondary market

Invest in existing loans that fit your investment strategy.

Our secondary market ensures your investments have high liquidity and can be realised as cash whenever you need it. Using our unique secondary market means you can buy existing loans which were provided through Žltý melón and previously funded by other investors, plus, sell your investment stake in loans made on our platform to other investors, quickly turning your investment back into cash.

When investing on the secondary market you are able to see the borrower’s history of repayments on their loan and the level of returns earned by the current investor from those repayments. You can also discuss other details with the current investor before negotiating a fair price for their stake in the existing loan, which works for both of you.

Savings through an automatic investment

Grow your savings through regular automatic investment in a portfolio of loans carefully selected to match your chosen investment strategy.

Our platform allows you to invest your money in loans automatically to save you time and ensure your money is working for you. All you need to do is choose your your desired investment strategy, either by setting the detailed loan criteria yourself, or by using one of our recommended investment strategies.

Our system of revenue optimisation does the rest and will ensure that your return on investment will be maximised. Automatic investment means you do not have to invest manually into various auctions for loans or discuss loan applications with potential borrower. Our system saves you time, while also ensuring you remain in full control of your investment and can monitor the performance of your portfolio or alter your investment strategy at any time.


Non-purpose loans

Unsecured personal loans of up to 15,000 EUR.

These are standard unsecured loans, but investors still have a legal right to collect from borrowers in the event of non-payment through a claim against the borrowers personal property. Higher risk borrowers are asked to consent to repayments through payroll deductions as a form of additional security for investors.

Non-purpose loan with co-debtor

This is the same type of loan as a standard personal loan, but is taken out with someone else close to the borrower, who agrees to act as a guarantor and co-signs for the loan.

If the borrower fails to repay their loan as agreed, the legal obligation for the loan and its full repayment passes to the guarantor.

CashFree Housing

Loans to finance the purchase of a new home

These loans are provided in partnership with a well-known real estate developer and is used to cover the first deposit needed to secure the reserveration of a new home bought by the applicant. The properties being purchased with these loans are currently under construction. As these loans are linked to real estate, the developer also provides an additional guarantee for investors, in the form of a full refund of their investment in the event that the borrower has difficulties maintaining their loan repayments.

You can learn more about this type of investment in the section on Cash-Free Housing investments.

CashFree Hypo

Loans to finance the deposit for the purchase of a new home

The CashFree Hypo loan is used to finance the deposit for the purchase of a new home. The primary requirement for this loan is to secure a traditional mortgage with a bank in Slovakia. These loans are secured through an agreement that allows investors to claim money owed to them through the sale of the property, immediately after the bank that issued the mortgage.

You can learn more about this type of investment in the section on Cash-Free Hypo investments.

Partner Loans

Investing with buyback guarantee and a stable returns for all investors.

This product is created in cooperation with established lenders who provide investments and interest guarantees. Everyone has the opportunity to invest easily in loans from major global providers, to achieve above-standard returns, and obtain the guarantee of invested money.

Learn more at Partner Loans.

Setting the interest rate for loans

Žltý melón will recommend an appropriate interest rate for each loan application. The recommended interest rate is based on both the applicant’s risk profile and the relevant conditions of the current loan market to balance the interests of both sides.

The recommended interest rate primarily depends on the applicant’s financial situation and is based on the appropriate risk surcharge for the applicant’s risk class. The risk surcharge depends on the level of risk for the loan and the possible impact on investment returns, in order that the risk surcharge can cover losses resulting from possible loan defaults and failed repayments when investments are sufficiently diversified.

you set the interest rate for loans

The recommended interest rates offered by Žltý melón for loans are not obligatory for the investors. You are able to define the actual interest rate for loans that will meet your expectations for returns on your investment and which you are willing to offer borrowers.

We monitor the activity trends for the various risk classes assigned to loan applicants, including the status of their current loans and for early indications of possible loan defaults and repayment difficulties.

TyPES of AUction

There are two types of auction in which investors can invest on Žltý melón: Standard auction and Secure investment auction. The main distinction lies in different price creation model for the loans.

Standard Auction

By this auction type is the final interest rate setup based on investor's bids competition.

  • Žltý melón recommends to each application an individual interest rate based on risk profile of the borrower.
  • Within the auction you may offer lower or higher rate then the recommended, however your investment can be removed and replaced by offers at lower interest rates that are ade by other investors .
  • The maximum interest rate you can bid is 1.5 multiple of the preferred interest rate.
  • The auction will run for up to 14 days, however, the borrower can accept the terms offered by investors at any point in order to end the auction earlier.
  • Once a loan auction reaches 100% funding for the borrower's requested loan amount, it will end within 24 hours. This is either at the original 14-day end date for the auction or 24 hours after the funding target has been met, whichever is sooner.

Secured investment

This auction type is used to finance purpose loans with a fix rate, specifically external or internal refinance loans and CashFree products.

  • Žltý melón assings to every such loan application fixed interest rate, at which may be the investment realized.
  • In case of CashFree Housing and CashFree Hypo there's no maximum limit on investment amount as the products comes with a guarantee.
  • In case of refinancing the borrower may refinance both existing loans granted on Žltý melón or by other exteral institution.
  • The auction lasts up to 14 days, in the moment the auction reaches 100 % funding it finishes immediately.