You can invest from 10 € to 500 € in one consumer loan. You can invest in crowdfunding (business) loans from 10 €, and there are no restrictions on the amount you can invest. The number of financed consumer or business loans is unlimited.
We recommend investing in small amounts in more loans to spread the risk as much as possible and to cause less damage to your loan portfolio if any borrower defaults.
The list of available loans provides information about the loan and the borrower so you can make well-informed decisions about risk. When choosing which loan to invest in, we recommend paying attention to the loan amount, term and annual interest. If it is a consumer loan, you need to assess SAVY’s credit rating and insolvency risk. You will also be able to view the borrower’s age, gender, education, income duration, length of service and other criteria. If it is a crowdfunding (business) loan, you will see the name of the company, its legal form, description of its activities, financial condition, collateral, guarantees and other important information. Financing progress is also reported for all loans. Each investor has an individual investment strategy, but it is very important to periodically review and adjust it after evaluating the results to better suit your investment goals.
The loan details show the annual interest rate, so if the interest rate on a 12-month loan is 12 percent, the monthly interest rate is 1 percent (12 / 12 = 1).
To make it easier for borrowers, the full cost of the loan (loan amount + interest) is divided into equal monthly instalments, which are calculated on the basis of an annuity. Each month the borrower repays a certain part of the loan to reduce their debt, the interest is then calculated from the remaining loan amount. Adding up all the interest and the loan amount, the loan price is divided by the number of months and the monthly installment received.
Here is an example: a €100 loan with 12 percent annual interest for 24 months. Each month the borrower must pay €4,71 (4,71 x 24 = €113,04). In the first month, the person owes €100, so the monthly interest is calculated from the following amount:
100 x 1 / 100 = €1
In that first month, the person pays a monthly installment of €4,71 – €3,71 of the loan plus €1 of interest.
The next month, the loan balance has reduced to €96,29 (100 – 3,71 = €96,29 ). So in the second month the loan interest is €0,96 (96,29 x 1/100 = €0,96). From the €4,71 monthly installment, €3,75 is paid towards reducing the balance of the loan (4,71 – 0,96 = €3,75 ).
As the amount borrowed decreases each month, the share of the repaid loan is increasing, decreasing the monthly interest.
Interest is charged at 0,05% for each day of delay – the monthly contribution received by the investor is multiplied by 0,05 and divided by 100. That number is then multiplied by the number of days overdue.
It is important to note that interest should be rounded to the nearest hundredth (two decimal places). We would also like to clarify that the borrower must make the payment by 5 / 15 / 25 of the month (depending on the date chosen for the payment of the instalments), but the default interest is calculated from 7 / 17 / 27 (leaving 6 / 16 / 26 if the transfer is delayed due to interbank transfers or other technical obstacles).
For example: the monthly payment is €2,68, the payment is 13 days late. Interest on arrears is calculated as follows: 2,68 x 0,05 / 100 x 13 = 0,01742. After rounding, we get €0,02.
Consequently, in this case, the €2,68 payment, which is 13 days late, is subject to additional default interest of €0,02.
- Register a new account on the SAVY platform;
- Connect a “Paysera” account (or create a new one) and transfer funds for investment;
- Create auto-investing profiles if you wish to invest automatically;
- For manual investing, choose loans from existing offers and invest your chosen sum;
- Manage your investment portfolio – including selling your investments in the secondary market or reinvesting your earned interest.
To secure the funds for investment and to ensure that you always have complete control, your money is held in a “Paysera” electronic account. You can connect an existing “Paysera” account or sign up for a new one as part of the SAVY investor registration process.
The “Paysera” account is completely free, and can be created in a few minutes by completing the online registration process and verifying your identity.
Note – one natural person can have both a borrower and investor account, but both must be registered with different e-mail addresses. To become an investor, you must register on the SAVY platform.
Before investing the investor must activate a secure, free “Paysera” account.
All your money is held in your personal “Paysera” account – your SAVY account balance shows how much money you currently have stored. Generally, the amount displayed in SAVY is the same as the balance of your “Paysera” account.
Interest received from loans is classified as B class income and is subject to 15% income tax. Profits from secondary trading of claim rights are also treated as Class B income and are subject to 15% income tax.
SAVY automatically provides data on annual income received, which must be reflected in a preliminary declaration prepared by the State Tax Inspectorate (STI).
You must submit the STI annual income tax return form GPM308 and its annexes for the previous tax period by 1 May of the current year.
- Trading rights on the Platform is not an individual activity;
- Profits from the purchase and sale of claims (i.e., buying and selling on the secondary market or investing in the primary market and selling on the secondary market) are Class B income. They are declared and taxed before 1 of May;
- 15% income tax is applied;
- Profits are taxed when the amount of the trading profit of the claim rights and the trading profit of other assets1 is more than 2,500€. This excess is subject to 15% income tax.
1Other assets are any personal assets, e.g., items, furniture, equipment, etc., excluding real estate, registered movable property and securities.
Interest must be declared under income type code in Annex P 58. The amount of interest received is indicated in the SAVY investor’s account table “My investments”, “Profitability” column “Earnings during year” row. This amount should be provided in Annex P of the preliminary declaration (see the example declaration on page 3 of the form). The amount of fees payable will be calculated automatically by the STI system.
It is necessary to check whether the data in the STI EDS system and the investor’s account match. You need to look at the line “earned interest in year X” in the investor’s account.
For different information, enter the number you see in your investor’s account on the return into the declaration.
Legal entities that have received loans from natural persons through the crowdfunding platform are obliged to submit to the State Tax Inspectorate (hereinafter – STI) a completed FR0711 declaration form, in which the legal entity declares:
- loans received from natural persons during the reporting period
- each amount equal to or greater than 600 EUR
- data on all or part of loans repaid to individuals.
However, because the data of the people investing in the loan is not disclosed to the legal entity receiving financing through the platform and there is not enough information to complete the FR0711 form properly, it is not necessary to provide data to the STI on loans received through the crowdfunding platform.
For foreign individuals (non-residents of Lithuania)
According to the applicable laws, SAVY is responsible for collecting the payable personal income tax (PIT) from investors who are not permanent residents of the Republic of Lithuania. The PIT rate is 15%, and it is automatically deducted from the earned interest upon receiving the loan payment. Additionally, a tax exemption of €500 applies, but this exemption can only be applied at the end of the year when submitting the annual income tax return. If you are not a permanent resident of the Republic of Lithuania and live in a country that has signed a Double Taxation Avoidance Agreement (DTAA) with the Republic of Lithuania, you can reduce the applicable income tax rate. Please contact us at hello@gosavy.com, and we will provide all the necessary information to reduce the applicable PIT rate.
For foreign legal entities (foreign companies)
Whether the interest is taxed or not depends on the country in which your company is registered. If the country is in the European Economic Area (EEA) or has signed a Double Taxation Avoidance Agreement (DTAA) with the Republic of Lithuania, corporate tax is not withheld. To take advantage of the corporate tax exemption, you need to provide us with the relevant documents by email at hello@gosavy.com. Such a document could be a residence certificate issued by the foreign tax authority (DAS-1 form) “Request of the foreign state resident to reduce the withholding tax” or a form related to the application of international double taxation avoidance agreements (FR0021) filled out on the VMI website. If the countries do not fall into any of these lists, a 10% tax on the interest is applied.
SAVY is the operator of the peer-to-peer lending platform with the rights and obligations set forth in Section V of the Law on Consumer Credit of the Republic of Lithuania. SAVY is included in the public list of operators of peer-to-peer lending platforms and consumer credit providers, and its activities are supervised by the Bank of Lithuania.
SAVY operates according to the Law on Consumer Credit of the Republic of Lithuania, the rules on creditworthiness assessment and responsible lending of consumer credit recipients and the requirements of all other applicable legal acts. It also reports to the Bank of Lithuania on a quarterly basis.
SAVY is the operator of the crowdfunding platform, entered in the Public List of crowdfunding platform operators, and its activities are supervised by the Bank of Lithuania.
When conducting crowdfunding activities, SAVY follows the Law on crowdfunding of the Republic of Lithuania.
The SAVY business continuity plan is coordinated with the Bank of Lithuania regulating SAVY activities. This plan sets out the measures to be taken in the event of suspended SAVY activities.
Basic principles:
- The issuance of new loans would be suspended;
- The administration of loans already issued would continue with the temporary administrator;
- The interim administrator would issue a tender for the sale of the loan portfolio, which should be settled with creditors.
The more attractive a loan – consumer or crowdfunded (business) – to investors, the faster it is financed. Depending on the amount and annual interest rate, financing can take anywhere from a few minutes to 7 days. Most attractive loans are financed automatically, so we recommend creating auto-investment profiles so as not to miss the opportunity to invest in your preferred short-term loans with high annual interest rates. The financed loan is transferred to the borrower, but the investment may be repaid if the borrower refuses the loan or no longer meets the credit criteria due to changed circumstances, such as job loss or exceeding the allowable income / liability ratio for new loans.
When logged-in to the SAVY account You can always view Your cash balance, however all your money until investing are held not in SAVY, but in personal “Paysera” account. You can always take out the money out of this account – you only need to transfer them from “Paysera” to other account. After deciding not to invest and redeem owned investments You have two possibilities. First – sell investments in the secondary market with or without discount. Second possibility – wait until the investments return to your personal “Paysera” account. If you have created auto-investing profiles, we recommend turning them off so the funds would not be invested automatically.
After deciding not to use SAVY platform anymore, You have to inform about it by e-mail address invest@gosavy.com. Depending on the number of existing investments SAVY will take necessary actions, for example disconnect “Paysera” account from the user account. In this way the Investor account in SAVY will be deactivated.
In the event of death, the investor’s funds in “Paysera” account are inherited in accordance with the law or by will. However, the heirs of SAVY may not be aware of the existing investor account, as such information is not displayed in the public registers. For the heirs to be able to take over not only the investments that have returned to the investor’s personal “Paysera” account, but also the investments that will return in the future, the investor should take care in advance to inform relatives that he has an active investor account in SAVY.
Upon payment by the Borrower, the funds are distributed to investors in the order of investment. If the funds received are insufficient to cover the full payment, the portion of the investment and interest is allocated to investors according to the size of the investment. If there are insufficient funds to cover the first investment on the list, the smaller investment below it will be covered.
Upon receipt of funds from the overdue borrower, the interest on arrears which belong to the investors is deducted first, followed by the current month’s installment.
The Investors’ Fund is a tool developed by SAVY, which allows you to invest more safely and insure against possible losses. In other words, if you invest with the Investors’ Fund, you will be compensated for the losses incurred before the compensation date from the amount of money administered by UAB “Bendras finansavimas” in the interests of the investors. The Investors’ Fund is intended for investing in consumer loans. When investing, you can choose whether you want to invest in the loan with or without the Fund.
If you choose to invest with the Investors’ Fund then you will get less interest and part of it will go into the fund. The interest you receive will depend on the annual interest rate of the loan you choose to invest in as shown in the table below.
| Annual loan interest rate | Part of the interest which investor receives |
| 24% and up | 12% |
| 23% | 11% |
| 22% | 11% |
| 21% | 11% |
| 20% | 11% |
| 19% | 10% |
| 18% | 10% |
| 17% | 10% |
| 16% | 10% |
| 15% | 9% |
| 14% | 9% |
| 13% | 8% |
| 12% | 8% |
| 11% | 7% |
| 10% | 7% |
| 9% | 6% |
| 8% | 6% |
| 7% | 5% |
| 6% | 5% |
| 5% | 4% |
If the borrower defaults for 90 consecutive days, you will recover the unpaid part of the investment and the interest accrued within 90 days.
Reimbursement from the Investors’ Fund is automatic.
In the SAVY platform, investments with the protection of the Investors’ Fund are marked with a shield.
All investors with automatic investment profiles invest in loans according to the order of investors, i.e., after investing in an application that meets all the criteria marked by the investor, the investor makes to the end of the queue of automatically investing investors and waits in line.
All investors are in the same queue, so the order is checked by A, B, C, D, and so on. The investor profile that meets the most criteria invests first.
Even though the loan matches the selected automatic investment criteria, it is possible that not all investors whose automatic investment criteria it meets will invest in it. This is the case when the queue of a particular investor has not yet been reached.
All investors with automatic investment profiles invest in loans according to the order of investors, i.e., after investing in an application that meets all the criteria marked by the investor, the investor travels to the end of the queue of automatically investing investors and waits in line.
Even though the loan matches the selected automatic investment criteria, it is possible that not all investors whose automatic investment criteria it meets will invest in it. This is the case when the queue of a particular investor has not yet been reached.
The list of loans shows all loans that are being financed or have already been financed. Most loans listed on the SAVY platform are financed using an automatic investment tool. Only loans that have not been fully financed through automatic investment can be invested manually, so the creation of automatic investment profiles is a very important part of an effective investment strategy.
