FAQ about Kiva Credit.
KivaCredit is a peer-to-peer lending marketplace that connects investors with borrowers of various loan originators. It is an easy and transparent alternative to the traditional banking system.
At KivaCredit both personal and institutional investors can invest in fractions of loans originated across Global. Currently, we serve short-term investments and project loans, personal loans, and small business loans. The minimum investment in one loan short-term is USD 50 and long-term USD 10
By connecting to the KivaCredit platform get instant access to investors that are looking to purchase loans.
Any person 18 years and older can register with KivaCredit. You can simply log in to KivaCredit using your profile on one of the social networks: Facebook, Twitter, Google+, vKontakte or register using your email.
Verify your identity by uploading the necessary copies of ID documents.
Both individuals and entities can invest through KivaCredit. To invest through KivaCredit, individual investors must be at least 18 years old, have a bank account or payment system online, and have their identity successfully verified by KivaCredit.
You need to enter the website using one of your social network accounts or email to issue a loan for the first time.
Choose the amount you want to lend ($50 to $1,000 USD per loan).
Choose the desired term (5 to 30 days).
Choose the desired interest rate (0.5% to 3% per day).
Select between "Guarant" and "No Guarant" options.
You have to agree with the Terms and Conditions by pressing the "Confirm" button.
You will be offered to add money to your personal account.
You will start making money as soon as the system matches your request with an offer.
Yes. You have to choose the "Garant" option on the credit calculator while creating a loan issue request (enabled by default). This option ensures the return of the loan at par value (loan amount), plus a minimum income that is equal to 0.070% per day if the borrower falls behind with the payments.
I don't want to deduct so much from my income to the KivaCredit credit network. What do I do?
You have to choose the "No Guarant" option on the credit calculator when creating a loan issue request. You will earn more, deducting only 10% of your profit to KivaCredit to cover the operational costs. In this case, the lender is responsible for all the credit risks.
If a borrower falls behind on payments for the loan, the lender is covered by the Guarantee Fund of the credit network in exchange for the right to claim the debt from the borrower. Credit certificates are redeemed at par value (loan amount), plus a minimum income that is equal to 0.070% per day. This rule only applies to creditors using the "Guarant" option. Accounts of members in other KivaCredit networks allow lenders to learn more about the borrowers and form an opinion before you approve a loan.
Lenders using the "Guarant" option deduct 40% to 50% of income that they get from borrowers. The deduction amount depends on the term of the loan. If there is no income, then there is no deduction.
There isn't a guaranteed time frame for your money to be invested. There is a constant demand since loans are provided for such a short period of time. Most of the time, you will be able to issue a loan within one day. Issue time also depends on the amount that you are willing to invest.
Loan Overdraft is a series of lending and borrowing transactions aimed at taking margin profits due to the difference in the interest rates.
Overdraft is available to any member of KivaCredit in the amount of three times the amount of his or her own funds at 0.5% per day. The maximum amount of the loan for Overdraft is $3,000 USD.
Conditions to get Overdraft.
Overdraft is issued under collateral. The collateral may be:
1. Own funds in the amount of 1/3 of the amount of the Overdraft loan;
2. Credit certificates of loans issued at the expense of the obtained credit for arbitrage;;
3. Credit certificates;;
4. Standard loans received;
5. Guarant loans received (in the amount of own funds).
You can use an Overdraft loan only to issue loans under the "Guarant" option.
The Overdraft allows members with a rating of 50 or higher to issue loans in an amount exceeding their payment account balance.
Conditions of using Overdraft.
The Overdraft option allows you to issue Guarant loans without having a sufficient amount of funds in the account. You need to add money to your account before the expiry of the loan issued. All profits earned prior to the deposit of the funds are transferred to the Guarantee Fund.
You can only issue Guarant loans using Overdraft mode.
You can borrow any amount from $50 to $1,000 USD.
The loan term can vary from 5 to 30 days.
In order to get a loan for the first time, you need to enter the website using one of your social network accounts. It is necessary to fill out the "My Profile" section and upload copies of identification documents in the "My Documents" section so that the operator can verify your identity and set up the KivaCredit account.
The member should first read and accept all Terms and Conditions to apply for the loan.
1. Choose the amount you want to borrow ($50 to $1,000 USD).
2. Choose the desired term (5 to 30 days).
3. Choose the desired interest rate (0.5 to 3% a day).
4. You have to agree with the Terms and Conditions by pressing a "Confirm" button.
Once you have applied for a loan, the request will be reviewed and posted within 24 hours (Monday to Friday). You will be notified if there is a lender with a matching offer. The funds will be transferred to your account if the lender approves your loan.
To repay a Guarant loan, you just need to add money to your account at the KivaCredit network. The outstanding amount will be drawn automatically from your account.
An early repayment option is not provided due to the fact that only short-term loans are issued in the KivaCredit network. However, you can redeem the Credit Certificate issued to your loan and it will then be considered 'paid'.
A Credit Certificate confirms that the lender has issued a loan to the borrower. It contains the issue date, maturity of the loan, amount, and interest rate. Credit Certificates are secured by the loan that was issued.
A Credit Certificate verifies the creditor's right to receive income on a loan granted after its maturity, including the specified principal amount and interest.
Due to the variety of development projects it is not possible to give a useful prediction of completion times. However, as with all our products, we pride ourselves on our speed of turnaround in comparison to high street lenders. Our experienced team would be glad to provide more guidance, once we have an understanding of your project.
What other costs are involved?
INTEREST ONLY: Make monthly interest only payments. ROLLED UP FACILITY: To improve cash flow, interest can be rolled up and payed when the loan is redeemed.
As with any loan you risk incurring charges and losing your security if repayments are not made. The key to successful repayment of all our loans is a robust exit strategy. Ideally borrowers should have multiple exit strategies in place.
Loans from $1k to $1million
Terms up to 48 months
No exit fees
Interest can be rolled up
Non regulated loans
5% platform fee. Fixed rates range from 10.99% p.a. to 30.99%. p.a. on 6 to 48 month terms, with no early repayment penalties.