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Terms of „Buyback“ for A+ are changing 2021-04-12

Terms of „Buyback“ for A+ are changing

From today (04.12), NEO Finance offers new Buyback pricing for new A+ rated loans, which is valid for loans invested manually or with an updated A+ auto-investment. 

If the A+ rating loan issued after this date becomes insolvent (default) and the agreement with the borrower is terminated: A+ investments will be automatically purchased by NEO Finance for 100% of the remaining part of the credit.

This means that investing will have even less risk!

Although from now on the risk of not receiving the planned interest when investing in A+ rated loans remains, NEO Finance guarantees that the invested amount will not be lost.

Until now, investors were offered to use the Buyback service upon termination of the agreement with the borrower, and 5 days prior to the termination of the agreement, investors were informed that they could sell the investment in such a loan manually by logging into their account. Failing to sell within the 3 day period of the best offer, the terms of the sale worsened and after 30 days the opportunity to sell the loan completely disappeared. The former conditions for ratings A, B and C remain valid and there are no changes.

Attention! According new changes, we recommend you update your existing automatic investment or create new one, because the new terms will automatically only apply to newly created A+ investments manually.

Investments in A+ loans, which are based on the automatic investment valid until now, are subject to the old Buyback terms. From today until April 22 you will have the opportunity to update an already created A+ automatic investment. Missing an opportunity to do so, old A+ automatic investments after April 22 will not work, however you will still be able to create a new type of A+ automatic investment after this date.

You can update auto-investment here.

What are the benefits of a 100% Buyback service?

  • Investing will be even safer, because A+ credit risk will be further reduced. Regardless of the size and period of the loan, A+ interest is planned from 5% to 8%.

  • As newly created A+ investments will reduce credit risk, the need to diversify the portfolio will also decrease. In this way, investors will be able to invest larger amounts more safely in a single loan. The remaining risk - is not to earn interest on insolvent loans.

  • For A+ loans, the Buyback service will be applied automatically, which is especially convenient for those who save their time or do not have the opportunity to follow their profile often or are worried that they will not be able to take advantage of the best selling terms. From now on, everything will be done for you.

All information provided is for informational purposes only and should not be construed as investment advice or recommendations. Before making investment decisions, carefully evaluate all the risks associated with the investment. When investing in A+ loans under the updated terms, it remains to receive or receive less interest than expected.

published:
2021-05-06
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