As part of our commitment to transparency on our platform, we would like to share some positive updates regarding the recent annual due diligence conducted on ITF Group.
Our due diligence process aims to understand the quality of loans provided by ITF Group, assessing factors such as historical repayment performance, cash generation on a portfolio basis, and overall profitability. This evaluation is essential as the listed loan portfolio serves as a security, safeguarding investors against potential defaults.
During the standard Due diligence, we also reviewed new loan products that they have introduced since our last analysis. With the positive findings, the ITF Group is able to increase the number of loans listed on the Income platform.
Initially, we accepted long-term loans (terms of more than 1 year) and short-term loans (less than 1 year). For long-term loans, we accepted only repeat customers with a Junior Share of 15%, while for short-term loans (terms of less than 1 year) we accepted both new and repeat customers with a Junior Share of 20% and 10%, respectively.
After careful consideration and analysis, we have adjusted the types of loans accepted on our platform based on maturity and borrower type. The changes are as follows:
Loan Types and Junior Share After Due Diligence Update:
- Fast(Short-term) loans with up to 30 days maturity:
- New Customers: Junior Share of 30%
- Repeat Customers: Junior Share of 10%
- Short-term loans with 80 to 365 days maturity:
- Junior Share: 10% (applies to both New and Repeat Customers)
- Short to Long-term (Instalment) loans with 80 to 731 days maturity (ITF differentiates another type of product internally, but some of the maturities overlap with the previous product category):
- Junior Share: 10% (applies to both New and Repeat Customers)
Background on Due Diligence and Risk Mitigation:
Our due diligence process involves an in-depth examination of the historical repayment coefficient, assessing the cash-generating capacity of loans on a portfolio basis. The resulting “Junior Share” is a critical metric that indicates the level of security for investors in case of unforeseen challenges.
By conducting this annual due diligence, we aim to provide you and ourselves with the best possible clarity on the risk associated with ITF loans on our platform. Our commitment to investor protection remains unwavering, and we will continue to adapt and refine our processes to ensure a secure and profitable investment experience.
