Overview – Euro Loan
- Interest rate from 6.9% to 17% per year
- Possibility to borrow from 1000 to 5000 EUR
- Maturity of 1 to 5 years
- Extra service charges (early repayment of loan) up to 5% of the loan amount
- In addition to the classic loan, there is also a refinancing loan promising up to 50% lower interest than in a bank
Representative example: A € 2000 loan with an interest rate of 8.9% per annum, with a maturity of 24 months, represents an annual cost percentage of 8.9% with a monthly loan repayment of € 91. The total amount paid by the client is 2184 €.
About Euro Loan
Euro Loan is a Slovak platform for arranging collective loans from people based in Poprad. It aims to connect investors and borrowers in a simple way, leaving the bank out of the process. This allows applicants to get more advantageous interest rates than they would get directly at the bank.
The P2P loan system in Slovakia does not have a long tradition, but is gradually becoming more and more domesticated. This alternative way of financing from Euro Loan is a safe area for both borrowers and investors, thanks in particular to the three-stage protection system.
- Diversification. In translation, an investment strategy designed to reduce the risk of investment. Accordingly, at Euro Loan, one investor never invests in just one loan, but his investment is distributed by 1% of the amount of the investment to several borrowers, thus increasing the return on the investment.
- Guarantee Fund. The total amount paid to one investor from the Guarantee Fund is a maximum of € 1,000. The Guarantee Fund covers the principal of the investment in installments that are in arrears. It currently stores more than € 1 million.
- Custom Scoring System. Although Euro Loan is not a bank, it is relatively strict in approving loans. The client assessment system has very strict conditions. Euro Loan lends money only to those who meet these requirements, as evidenced by the fact that no investor has ever lost a penny of its investment.
Euro Loan’s operating income is the difference between interest received and paid, with 1% of each repayment from the debtors deposited in the Guarantee Fund first. Thanks to advanced technologies, Euro Loan can efficiently process individual applications and provide a loan quickly.
Advantages and disadvantages of Euro Loan
- Lower interest rates than at the bank, starting at an average of 6.9% per year
- No equipment in the stone branches
- The entire rental process is online
- The Guarantee Fund secures every transaction
- Possibility to apply for refinancing with interest 50% lower from the original
- Still relatively unknown market for P2P loans
- Longer waiting time to evaluate your score
- Early repayment of the loan with only 5% principal fee
Frequently Asked Questions
What documents must I attach to my loan application?
You must present two identity documents when applying for a loan. Identity card and, for example, driver’s license or passport. Proof of your receipt, such as a paycheck or bank statement, is also important for successful loan approval.
How long does the loan take?
After all necessary documents and documents have been delivered, the entered data will be verified and you will be informed immediately after their complete verification. Once the loan is finally approved, you will receive the money immediately.
If I already have one Euro Loan loan, can I apply for another?
Yes, you can, but only after you have paid at least the 6th prescribed installment in the order of the already drawn loan and at the same time after the due date of that installment. For example: The sixth installment of your loan is due by December 20, 2018. You will pay it three days earlier, but you can only apply for a new loan after December 20.
What happens if I do not pay back or pay?
If you miss the installment, you will be notified by SMS. If you do not pay in accordance with the current payment schedule, you will also be contacted by phone and email. If you are late for more than 6 days, you will receive a 6 EUR written reminder.
If, despite a written request for payment, the delayed payment is not paid, Euro Loan will issue a client loan for mandate management, which will incur additional fees. After not paying 4 successive installments, your loan will be taken to an external company using a court trip and a bailiff.
What if an investor who has invested in my loan decides to terminate the investment early?
If it happens that your investor decides to withdraw from an ongoing investment, your loan will not be affected. It will continue under the same conditions as agreed in the contract. Euro Loan will only allow premature termination of the investment if another investor is found to replace the canceled investment.
Does the investor know who is lending money?
Euro Loan’s clients (whether investors or loan applicants) do not know each other. Neither can you find out who lent you the money. Clients’ personal data is subject to strict protection under the Personal Data Protection Act. Clients in the company system are assigned only identification numbers under which they act.