Risks and Diversification
It is recommended that investors diversify their investments
Diversification is a method of risk management for investment, wherein the investors place spread funds across various loans rather than focusing on a single one. For example: if you have 5000 GEL to invest in "PirDaPir”, there are two options:
- Fund a single 5000 GEL loan
- Fund 20 borrowers at 250 GEL each.
Should you finance one borrower and over time he proves unable to repay the loan, you could, potentially, lose your money. However, were you to fund 20 borrowers and one of them is unable to repay the loan, you would be able to redistribute your risk.
Borrowers and Investors (lenders) agree to the terms provided in the Legal Documents section of the website. Violation of these terms will lead to consequences up to and including the submission of a lawsuit pursuant to the funds involved plus costs and damages.
A loan is considered late if any payment is delayed by less than 30 days.
A loan is considered overdue if any payment is delayed from 30 to 90 days.
A loan is considered a problem loan if it is late by more than 90 days.
The platform will demand repayment of delayed loans on behalf of investors and transfer any recovered funds directly to the repayment of the loan. Also, subject to the willingness of investors holding A, B and C credit rating loans, PirDaPir will act on their behalf - transfering an overdue loan to a collection agency or by submitting a lawsuit, on behalf of the investors, to coordinate the courts decision execution process with all relevant authorities.