Overview
SaFi will offer retail personal loans (PL) with higher offered amounts compared to overdraft or BNPL.
Not everyone will be eligible for a PL, but over time when user builds credit history with SaFi, eligibility might be granted.
Due to limitations on the fronend, one customer can have one PL at a time, but can have 1 overdraft and more BNPLs too.
Getting it in real-time, except of cases that might require manual checks.
General loans specs (shared at Personal loans and Overdrafts)
For a new SaFi customer, loans KYC and the first risk assessment is done during the onboarding process.
Terms and conditions of loans: It is covered in SaFi’s master agreement which customer agrees to while onboarding. The customer does not need any additional legal approval when getting a new loan.
Credit line recalculation:
The customers should not be able to initiate recalculation - unless require “more money” (not MVP functionality)
The Recalculation of the credit line is triggered based on customer interaction, time, etc. Exact automated logic is defined by the Risk engine.
Repayments: manual repayment is accepted only from main account and unlocked pockets.
The frontend should change if customer is late with payment
No new loans can be applied for
Warning messages, colours to remind user about being late with repayment
Instalment and any fees should be automatically deducted from the main account, if enough balance is available. The exact logic is defined by the Debt Manager service.
the due date is taken into consideration, see Debt manager for more detail
Sequence of debiting the accounts
(a) subscription fees of the bank
(b) penalties/charges for past due loans
(c) penalties/charges for overdraft
(d) past due loan (principal)
(e) past due overdraft (principal)
(f) interest for loan (overdraft)
(g) current due for loan (principal)
(h) current due for overdraft (principal)
(i) other subscriptions with other merchants (auto-debits)
Product specs
The loan amount is credited to the customer’s main account.
Customers can not restructure the loan nor change any of its parameters after disbursement.
Restriction of usage of funds: not applied.
Early manual repayment for Personal loans
Early full repayment. It is required to calculate:
Outstanding loan principle balance
Interest rate and fees accrued up to the date (such as if the standard installment date is 10th and customer decides to early repay the loan on 15th; then we will add the 5 days with accrued interest rate).
The customer will need to have the full amount available on his Main account, in order to be able to fully early repay the loan.
Partial early repayment of the next instalment (part of the next instalment amount)
We will prepay the next instalment, with the amount inputed by the customer.
No need to recalculate payment schedule
Early repayment (more money than the next instalment(s)). there are multiple early repayment options for the clients:
Prepayment: this happens when the client wants to keep his current instalment plan unchanged AND use the money available to prepay the future instalments. The prepayment of future instalments can be done also partially and will be visible to the client.
Immediate re-payment: the amount the customer selects for repaying his outstanding loan balance will be immediately allocated and will cover the loan outstanding balance.
Due to this change, a recalculation of the instalment plan will be needed. The customer can chose one for these 2 options:
Either decrease the monthly repayment amount and keep the number of instalments, OR
Keep the monthly repayment amount as previously and shorten the number of future instalments.
Cash-in repayment:
All cash should go through the account first (and not post it against the loan directly). Easier to handle if customer pays more than the next installment, just leave the extra at the account. If a user is delayed with its instalment, SaFI can deduct the cash-in from account immediately.
Customers are notified about the milestones of a loan (loan successfully opened, instalment deducted, loan closed)