Loan Investors Mobile App
3. Collection Agency
The investors accounts are the accounts that fund loans taken out by borrowers. They shall receive a percentage of interest monthly based upon the scoring of each borrower, rated A through F.
Investors can eliminate risk from loaner default by purchasing the optional insurance policy that will cover all investments for a flat monthly fee of $5.00. The insurance policy will work in this manner: if an investor who had an insurance policy invests in a loan, and the borrower if that loan defaults on it, the investor can recover the investment through the insurance policy, which sells default loans to collection agencies who bid on them at auction. The money from the sale of those loans goes to reimburse the investors up to the amount of their investment plus interest. Any remaining amount of goes to Loan Investors, hereafter referred to as "the Company".
All loan notes sell for a minimum of $25. Investors can choose the amounts they want to pay, so long as it's more than the $25 minimum.
Minimum deposits are $100.
The investments shall all be sorted A through F, according to the credit rating of the borrowers. The A rating is the highest credit rating with the lowest interest and F is the lowest credit rating with the highest interest. Each letter rank increases the interest rating by 1% progressively from A to F, starting with A at 5% and ending with F at 11% interest.
If an investor from one country wants to invest in a borrower from another country, currency can be converted by using the cryptocurrency Stellar Lumens. It's instant, efficient and cost effective.
Borrower Accounts are the accounts owned by people seeking a loan who are funded by investors. Borrowers are ranked according to their credit rating, but are NEVER prohibited from receiving a loan, as they, not the investors, are the ones who bare all the risks in the event of a default. The investors lose nothing if the borrowers default. The borrowers are at risk of loss in the case of default.
Types of Loans:
Payday loans: minimum of $100 to 500. 1 to 2 week terms
Personal loans: from $501 to $5000. 3 to 12 month terms
Installment loans: from $5001 to $10,000. 24 to 48 months
Student loans: from $5,000 to $50,000. No term limit.
Home Equity loan: from $50,000 to $100,000. 15 to 30 year terms.
Mortgage loan: $80,000 to $100,000. 15 to 30 year terms.
Business loans: from $20,000 to $100,000. No term limits.
Anyone can borrow from any location on Earth using any currency. All currency conversion will be done through Stellar Lumens.
All defaulted loans will automatically be placed on auction for the collection agency accounts to bid on. The minimum price will be the amount of the loan with interest added and it shall increase with each bid.
Collection Agency Accounts:
Collection Agencies shall have accounts in which they can bid on defaulted loans being sold at auction. The proceeds from the sale of the defaulted loans shall automatically go to reimburse the investors who had monies invested in them, plus the interest from the investment. Any money remaining shall go to the Company.
Once the loan is sold to a collection agency, it's fully at the discretion of the collection agency that bought it. The Company no longer has control over it.
Collection Agencies may only bid on defaulted loans that are within their own country where they have jurisdiction.
Security measures and Fraud Prevention:
Each member shall upload a document for identity verification. They shall upload a photo of the front, back and a selfie with their document. This is to prevent multiple accounts and loan looping, which is a borrower who registers as an investor and reinvests their loan money back into their borrower account to receive interest on it.
Any account found to be defrauding the Company our any of it's members will be banned, and depending on the amount of money involved, prosecuted to the fullest extent of the law in their respective countries.