What is Crowdlendio?
Crowdlendio is a new peer-to-peer investing platform, based in Tallinn, Estonia. We give an investor in the European Economic Area (EEA) a possibility to directly invest in a different type of projects that are available on the platform.
What is peer-to-peer investing?
Peer-to-peer investing is a practice of financing a project or fundraising endeavor from a large group of people. It is often managed by a specialized internet platform, such as Crowdlendio.
Does Crowdlendio guarantee my loans?
Crowdlendio’s services do not fall under the scope of banking laws and regulations. As with most forms of investing, peer-to-peer lending carries a degree of risk. We reduce this risk to our investors by conducting thorough due diligence and by taking asset security on every loan, in case the borrower is unable to repay their loan. Crowdlendio does not guarantee your loans.
What are the fees for investors?
No fees apply to investors. The borrower covers all expenses.
What regulations apply to Crowdlendio?
The Estonian Financial Conduct Authority (FCA) has confirmed in 2014 that any laws or regulations that apply to credit institutions or broker-dealers do not apply to us as Crowdlendio is not a finance provider but a facilitator.
What happens to my established contracts if Crowdlendio goes into bankruptcy?
Crowdlendio is a facilitator of real investments, and we do not offer the management of assets. All investment contracts are signed between the borrower and the investor, Crowdlendio simply facilitates this transaction. All clients’ funds are separated from Crowdlendio's operational funds. In case Crowdlendio should suffer financial difficulties or go bankrupt, client funds are safe and can still be accessed. In such an unlikely event, a contractual entity will be appointed to take over the role of Crowdlendio to serve all the investments.
Who can invest in Crowdlendio?
You must be at least 18 years old and have a bank account in any of the European Economic area (European Union, Norway, Iceland, Liechtenstein and Switzerland); to lend through Crowdlendio. We comply by “Know Your Customer” policies and hence must perform background checks for each investor before they start investing with Crowdlendio.
Is it possible to invest through a company?
No, only a natural person can act as an investor.
How much does it cost to deposit to Crowdlendio account?
Crowdlendio does not charge any fees from deposits or withdrawals. However, your home bank may apply fees for transfers according to the bank's price list.
What payment options are accepted by Crowdlendio?
Crowdlendio accepted payment method is a bank transfer.
How long does it take to transfer the funds to my User’s account?
Once the funds arrive to our bank account, they will be allocated to your virtual account at regular intervals during the day, from Monday to Friday. The rate at how fast your funds will be in your User’s account depends mostly on which bank you use. Our experience shows that it usually takes one day in Estonia and 2-3 days in other countries. At the weekends, this may take more time.
Please note that only one bank account can be tied to your Crowdlendio account. The withdrawals are only made to the account you have registering in the Crowdlendio system. The bank account owner's first and last name must match the User’s registered first and last name to have the withdrawal accepted.
This time of processing and verification is required to ensure that your funds are not compromised, even if someone manages to get hold of your account access details.
What documents do we require from investors?
Copy of Passport or ID (both sides), utility services bill assigned to the address indicated upon registration (it can be assigned to a different person, such as another family member or landlord.
How can I start investing in Crowdlendio?
Firstly, you would need to sign up as an investor on our platform. Secondly, you would need to confirm your email account and activate your user account. Before you can start investing, you are required to send us an accurate copy of your government-issued identification document, i.e. copy of your passport or ID-card (two sides). Thirdly, you need to transfer your money to your Crowdlendio virtual User account. Choose a loan you would like to invest. All loan repayments and interest accrued are held on your Crowdlendio account.
What is the minimum investment amount?
The minimum investment amount is 50 EUR.
Is the interest rate fixed?
Yes, the interest rate, paid by the borrower, is fixed throughout the loan period. The payment frequency and interest rate can vary depending on the loan type.
Can I cancel investment?
No, once you have confirmed the investment, you cannot cancel it.
Am I obligated to pay tax on interest that I receive?
The interest that you receive from borrowers is gross income, which means that Crowdlendio does not deduct any tax from the received amount. All interest earned from loans is treated by tax authorities as investment income and thus subject to income tax. Crowdlendio does not provide tax-related advice, and in case you require additional information, we recommend you to contact your local tax advisor.
Do I earn interest on funds which I have not yet invested in loans?
We do not pay interest on uninvested funds. To get the best return from using our platform you should invest your money into open projects to minimize uninvested funds.
What happens when the borrower wants to extend the loan period?
In case the borrower wants to extend the loan period, Crowdlendio will investigate the reasons and assess the situation accordingly. If the loan period is extended, the borrower will be obliged to pay a fee to cover additional documentation expenses.
How do you ensure that the borrower can repay the loan?
The aim of inspecting the borrower is to assess the company's ability to pay back the loan. We do a thorough investigation of the borrowers' background and carry out due diligence. To ensure the safety of our investors, each project will have a collateral.
What happens when the project does not meet the target financing?
The money will be returned automatically to your Crowdlendio wallet at the day when the project deadline passes.
What currencies do we accept?
Crowdlendio accepts payments only in EUR currency.
What information do we require from our borrowers to apply for the loan?
Requested loan period, interest and repayment schedule. Description of the project – how will the money be used; description of the mortgage or other project (location, condition). Appraisal report, business plan, photos if applicable, information about previous projects and introduction of the borrower. Additional documents can be sent by email.
What are the fees for the borrower?
Crowdlendio charges 2-4% of the total loan amount in case of a successful funding process and depending on the difficulty of the project. In case of a delay in the loan repayment, several penalty fees need to be paid by the borrower to the investor.
How can I get my project published?
You can contact our team on firstname.lastname@example.org, we will contact you and help you to create your project on our webpage.