What is the Investors’ fund?
What is the Investors’ Fund? This is the amount of money administered in the general interest of investors. Its purpose is to compensate for possible losses resulting from investments in consumer loans if the borrower is late to repay the loan for 90 consecutive days.
How to reduce the risk of borrowing?
SAVY’s peer-to-peer lending platform has created a tool to help reduce the risk of losses – this is the Investors’ Fund. The idea is simple – after choosing to invest in consumer loans with the Investors’ Fund, a portion of the received interest will be allocated to the fund. In case of an emergency, the fund compensates the investor for the outstanding part of the loan and accrued interest, and further, it takes over the rights of the investor and carries out debt recovery.
With the Investors’ Fund, it is possible to invest solely in consumer loans.
How is the Investors’ fund financed?
The Investors’ fund is financed from the interest paid by borrowers. It means that by using the fund, investor receives lower interest rate but can reduce the risk of loss, if the Borrower would face insolvency problems.
What is the final interest which investor receives when investing with Investors’ fund?
Part of the interest which investor receives depends on the loan’s annual interest rate:
| Annual loan interest rate | Part of the interest which investor receives |
| 29 % and up | 14 % |
| 28 % | 13 % |
| 27 % | 13 % |
| 26 % | 13 % |
| 25 % | 12 % |
| 24 % | 12 % |
| 23 % | 12 % |
| 22 % | 11 % |
| 21 % | 11 % |
| 20 % | 11 % |
| 19 % | 10 % |
| 18 % | 10 % |
| 17 % | 10 % |
| 16 % | 9 % |
| 15 % | 9 % |
| 14 % | 9 % |
| 13 % | 8 % |
| 12 % | 8 % |
| 11 % | 7 % |
| 10 % | 7 % |
| 9 % | 6 % |
| 8 % | 6 % |
| 7 % | 5 % |
| 6 % | 5 % |
| 5 % | 4 % |
What part of interest is transferred to the fund?
The part of interest which is transferred to the fund depends on the annual loan interest rate:
| Annual loan interest rate | Part of the interest transferred to the fund |
| 29 % and up | 15 % and up |
| 28 % | 15 % |
| 27 % | 14 % |
| 26 % | 13 % |
| 25 % | 13 % |
| 24 % | 12 % |
| 23 % | 11 % |
| 22 % | 11 % |
| 21 % | 10 % |
| 20 % | 9 % |
| 19 % | 9 % |
| 18 % | 8 % |
| 17 % | 7 % |
| 16 % | 7 % |
| 15 % | 6 % |
| 14 % | 5 % |
| 13 % | 5 % |
| 12 % | 4 % |
| 11 % | 4 % |
| 10 % | 3 % |
| 9 % | 3 % |
| 8 % | 2 % |
| 7 % | 2 % |
| 6 % | 1 % |
| 5 % | 1 % |
What are the benefits for investor?
The main benefit of borrowing with Investors’ fund – when borrower delays payments for more than 90 days, the fund compensates and investor receives the invested money faster, i.e., the outstanding loan with interest for the 90 days. In other cases, investing without Investors’ fund, investor can expect for a longer debt recovery process and the uncertainty of receiving the total loan with interest.
What are the risks of borrowing with Investors’ fund?
Investors’ fund compensates if the fund has accumulated funds. If it happens that the insolvency of borrowers increases significantly and more compensation is needed from the fund and due to this reason, the fund empties, the compensation is deferred until there are funds to reimburse the oldest pending redemption loan and claim rights under it. For the period when waiting for the compensation – no interest on arrears or other fees are paid out to the investor.
When and how is the compensation carried out?
Investor is compensated when the borrower delays payments for more than 90 days. In this case the investor receives borrowers outstanding loan with interest for the 90 days – everything except interest on arrears and other fees, if there are any.
The best part of it if the automatic compensation – there is no need for the investor to call, negotiate, write requests, or collect documents.
How to invest with Investors’ fund?
Investing with Investors’ fund is easy – You only need to check your choice with checkmark. This also applies if you choose auto-investing – you simply tick the box with your decision and all investments will continue to be automatically protected by the Investors’ Fund.
What is the structure of Investors’ fund?
Investors’ fund contributions consist of the portion of interest paid by borrowers to the fund and bought-out debts from the investors, i.e., unpaid portion of debts. Payments from the Fund consist of payments to investors for non-performing loans and accrued interest for a period of 90 days.
