What is the method, used to calculate the expected profit (interest) of the loans?
The expected profit is calculated by the XIRR formula (Extended Internal Rate of Return). XIRR is a widely used method for calculating profit from investments, which takes a series of payments. The formula we use to calculate the profit is excel
=XIRR (amount, data, [suggestion]).
All interest percentage in the platform is presented as annual value.
What are the credit rate scores, used to determine the default probability of each loan?
One of the methods by which the originators control the risk, is using a credit rate score system. This is a procedure of classifying every credit in different categories, based on the default probability (the probability the borrower to stop paying off their loan).
All loans in iuvo have a score rate. This is needed so the credits from different originators can be compared.
The credit score rates in iuvo are:
A 0 – 4% default probability
B 4 – 10% default probability
C 10 – 18% default probability
D 18 – 25% default probability
E 25 – 35% default probability
HR above 35% default probability
What is a buy-back guarantee?
All loans listed on the platform have the so called buy-back guarantee. This means that the Originator is obligated to buy back the credit from the investor at its nominal value in case the borrower stops paying off their loan. The Originator will restore the investment back to your iuvo account.
The buy-back guarantee activates on the 61-st day, counted from the date of the first unpaid installment.
What is a late fee and when is it being applied?
The late fee is an additional charge that the originator applies to the borrower in the case of a delayed installment. Every originator determines the conditions and the amount of the charge that applies.
The Investors receive such a part from the fee, as the amount of the credit they own.
What is the minimum sum for investing?
The minimum amount you can invest in the Primary Market is as follows: 10 BGN, 10 EUR, 25 RON.
There is no minimum amount for investing on the Secondary Market.
How to invest?
You have two investing options in iuvo – manual and automatic.
The manual investing includes: credit details review; choosing which particular credit to invest in, adding to your Cart and confirming the investments.
The Auto-Investing option includes: creating a portfolio, where you can apply certain filters. After you start Auto-Investing, the software invests in loans that fit your criteria.
When do you receive payments?
You receive a principal amount and interest amount for every paid installment by the borrower. The data is accessible from the “Account Statement” section. The due date of each installment is visible in the ‘Payment schedule’ of every credit. This is where you can find out which installment is about to be paid.
The period between installments can be: 7 days, 14 days, 15 days, 30 days and monthly.
Can I cancel my investment?
What is a Secondary Market?
The Secondary Market gives you the opportunity to sell some of your investments, which can be on a price:
– higher than the nominal (premium) – premium/discount > 0%
– lower than the nominal (discount) – premium/discount < 0% - same as the nominal - premium/discount = 0% The option to sell on the Secondary Market gives our investors the opportunity to have a faster liquidity on an investment they have made. Investing on the Secondary Market allows you to invest in loans, which are not on the Primary Market and it also allows you to buy a credit on a lower than the nominal price because there is no minimum sum. Please, bare in mind that the only fee the platform has is when you are selling on the Secondary Market - 1% of the announced price.