Qualified financial experts representing “PirDaPir” rate each loan application and set the relevant interest rates.
Interest rates are set based on the applicant’s credit rating. Information regarding credit ratings and their corresponding rates are provided in the Risks and Diversification section; furthermore each rating is derived from the provided data and subsequent verification of the aforementioned information. When setting the ratings, each applicant’s demographic status, credit history (credit bureau data), debt service capacity, and loan maturity-along with other factors-are considered.
Each loan application is assigned a quality rating by “PirDaPir” administrators. Assessment of the loan quality is conducted using “PirDaPir’s”a proprietary scoring model. This model takes into consideration multiple factors, including the applicants demographic, financial status, and credit history among other aspects. The ratings range from A to D, with A being the highest and D being the lowest.
Credit Scores explained below:
|Rating||Expected interest Rate||Rating meaning for recommendation purposes|
|A||15-21%||Probability of default and investor losses is very low|
|B||22-32%||Probability of default and investor losses is low|
|C||33-47%||Probability of default and losses is medium|
|D||48-69%||Probability of default or investor losses is high|
These ratings are used to define interest rates, for investor information and recommendation purposes only. PirDaPir does not take responsibility for defining exact probabilities of loan repayment or the actual reimbursement of any loan.
Investor Service Fees - loan services, transactions and an annual account maintenance fee (charged by investors) equal 1% of the disbursed amount. This fee will be deducted from the borrower’s monthly payments.