FAQ

• What factors influence loan approval?
  The following might be considered positive factors which can influence loan approval:
  1․ Long-standing relationship between the creditor and the client
  2․ Business reputation
  3․ Other
• What is a credit SCORE?
  Score is the evaluation of the customer's creditworthiness formed in the scoring system, which is obtained as a result of the analysis of various available information about the customer and the application of statistical methods. Based on the score, the possible credit limit, term and other conditions for a specific type of loan can be determined.
  In the lending process, one can use their own scoring system, as well as the scoring calculators provided by ACRA Credit Bureau.
  The main factors for forming the customer's SCORE rating are,
  • number and amount of loans received,
  • number and amount of guarantees provided,
  • history of payments (repayments),
  • types of received loans,
  • number of new loan applications submitted,
  • number and type of ACRA requests.
• What factors influence loan rejection?
  Your loan application might be rejected if:
  
  Presented information/documents/data appear to be non-trustworthy or incomplete
  Your income is insufficient
  You have a bad credit history, overdue and/or classified liabilities (including to third parties).
  Other
• Can I get a Loan if I have a bad credit history?
  Presence of positive credit history is highly desirable for credit provision, still in some cases the overdue of a few days might not be taken into consideration depending on the type of the loan. Details need to be discussed with the loan officer by visiting any branch of CARDAgroCredit UCO.
• What if I fail to repay the loan when due?
  If you fail to repay your obligations when due or repay them partially, you will have to pay fines and penalties specified in the agreement. If you fail to pay the overdue obligations within 3 business days, the information about it will be reported to the Credit Bureau. It may affect your credit history and it will be difficult for you to get a loan in future.
  
  Note, that once a year you may request information about your credit history from Credit Bureau for free.
  
  When you repay your overdue debt, the payment will be made in the following order:
  
  1. Fines and penalties
  
  2. Interest
  
  3. Principal
• What is nominal interest rate and annual percentage rate (APR)?
  Loan interest is calculated based on nominal interest rate. The latter shows the annual interest accrued on the outstanding loan. Interest accrues on daily basis to the outstanding loan principal in the loan currency based on a 365-day calendar year.
  
  The annual percentage rate (APR) shows the cost of the loan in case of due and timely repayments under the agreement.
  
  The annual percentage rate (APR) shows the cost of the loan in case of due and timely payment of interest, loan disbursement and service fees.
  
  The amount of interest is calculated based on the annual nominal rate and manner of the loan repayment.
• When is the collateral enforced (foreclosed on)?
  The collateral may be enforced (foreclosed on) if the borrower fails to repay the loan and interest when due. Should the value of the collateral be insufficient, the borrower's obligations will be repaid at the expense of other property owned by the borrower.
• What should I know before becoming a guarantor?
  If you become a guarantor you assume the responsibility for non-performance or improper performance of the borrower's credit obligations. If the borrower fails to pay the debt, you will bear joint and several or subsidiary responsibility to the CO for repaying the outstanding loan. Note, that you will bear liability before the creditor to the same extent as the debtor, including interest, legal fees with respect to enforcement of debt and reimbursement of losses incurred by the creditor due to non-performance or improper performance of obligations by the debtor, unless otherwise specified in the Guarantee Agreement.
  
  You are entitled to receive reimbursement from the borrower for the repaid debt, i.e. you may request the borrower to reimburse the amount paid to the CO, the interest and other expenses incurred as a result of taking responsibility instead of the borrower.
  
  The CO in its turn must notify you about the next repayment and any delay in payment.
  
  The borrower’s failure to make the repayments when due will affect your credit history and you may appear in the Bad Borrower List. It may be difficult for you to get a loan in future.