Provision fund is a certain sum of PLC Bendras finansavimas investors’ money that is administrated in their interest and is dedicated to compensate investors’ losses until the compensation day in case the Investor chooses to invest with the Provision fund.
Investors will be able to choose on each investments, to invest with Provision fund or without Provision fund.
Why the Provision fund is structured like this and how will it be funded?
SAVY has chosen the most popular model in Europe, which allows the Fund to be financed by a certain part of interest that is paid by the Loan receiver. This means that, in case the Investor chooses to loan money with the Provision fund, he will receive 10% yearly interest, and the difference will be sent through the bank into a special bank account administrated by SAVY.
The sum of money in the Provision fund will be public starting from June. In the case of insolvency, the Fund will compensate money to investors that choose the Provision fund, will take over the right to demand and will start the exaction procedure. Received money will be transferred to the Provision fund in order for it to grow.
In the United Kingdom where similar Provision funds first started, they are the most popular to this day. The main difference is that investors do not have a choice other than to use the Provision fund. SAVY investors took a stance that they want to have a choice, that is why we are starting from the free-to-choose Provision fund.
What will the sign of ”shield” means?
Loan marked by a “shield” sign means that it is associated with the Provision fund.
When and what will be compensated?
The compensation will be carried out after the Loan receiver will not do their obligations for 90 days. The sum of money for 90 days with interest will be paid back. Fine and other fees will not be compensated.
How to choose an automatic investing with the Provision fund?
You can choose the automatic investing with the Provision fund by clicking one tick – see the example. In this way your profile will be investing in all chosen loans with the Provision fund protection.
How to sell/buy investments with the Provision fund in the secondary market?
In the secondary market loans with the Provision fund will be marked with the “shield” sign and you will be able to filter them.
What about the loans with IP mortgage?
There will be no opportunity to invest to loans with IP mortgage with the Provision fund.