Investment into loans is related to the specific risks.
Each investor willing to use his/her funds through the peer-to-peer lending platform CREDON must familiarize with possible risks and assess if the risks are acceptable to him/her.
- Improper performance of the financial obligations provided for in the consumer credit agreement: there may be cases where, for any reason, the consumer is unable to perform his/her financial obligations provided for in the consumer credit agreement in due time.
- Default of the financial obligations provided for in the consumer credit agreement: there may be cases where, for any reason, the consumer does not perform his/her financial obligations provided for in the consumer credit agreement.
- Changes in the national unemployment rate: if the unemployment rate suddenly increases, the existing borrowers in CREDON Platform in lower-income brackets are likely to fall within the group of higher risk for default and their insolvency risk would increase.
- Insolvency of the consumer: there may be cases where the consumer fails to perform the financial obligations provided for in the credit consumer agreement addresses the court for institution of bankruptcy proceedings against a natural person during the term of the agreement.
- In order to minimize the afore-mentioned risks, CREDON carefully evaluates each new borrower’s application for loan by taking advantage of the status of the personal data controller granted by the State Data Protection Inspectorate, data collected by credit bureaus, the data available in the loan risk database, the data and information provided by the borrowers and other necessary information or documents. Only the applications meeting the set creditworthiness requirements which are evaluated and recognized fall within the list of loans intended for the Investors.