The "two-way breakup" model has natural low risk.
Lenders' funds are scattered among many high-quality borrowers, and the risks are also scattered. For example, 500,000 funds are likely to be distributed to, for example, 30 people, and the borrower's funds are also distributed to different lenders, so that the risk probability of lenders is greatly reduced, and this lending method is naturally low-risk.
Strict credit management system will minimize the credit risk of borrowers.
1, scientific and strict recommended screening. The latest FICO (Fico) system, the world's leading business risk decision management, accurately grasps the borrower's credit situation, ensures that every borrower's customer is a high-quality credit customer determined by a scientific credit review system, and fully investigates his repayment willingness and repayment ability;
2. Strong post-lending management ensures that risks can be controlled;
The repayment risk fund account provides double insurance for the borrowed funds.
Even if individual borrowers fail to repay, the platform also sets up a repayment risk fund mechanism, that is, the platform withdraws certain special funds from the service fee in advance to make up for the possible losses caused by the borrower's default.
1. The withdrawal ratio of repayment risk fund is set by CreditEase according to the overall default status of the borrower, and it has the right to make appropriate adjustments. At present, the repayment risk fund withdrawal ratio is 2% of the total loan;
2. CreditEase shall disclose the overall information of the special account for repayment risk to the lender on a quarterly basis;
3. If the lender is compensated by the special account for repayment risk during the disclosure period, the specific compensation of the lender will be disclosed.