When a payment is not made in the contractual terms, the loan gets from the "current" status to the "outstanding" status. When the borrower does not pay the monthly payments within two months, the loan becomes 'default'. At the same time, we work with third-party institutions, such as bailiffs and collection agencies, to recover problematic loans.
And when there are no longer reasonable expectations about any payouts of the loan, then it gets the "compromised" status.
Fagura informs each investor about the probability of default of specific proposed loans. This default rate is determined on the basis of lending history, macroeconomic conditions and other factors. You can see the default rate before financing each individual loan, or you can select a range through Autoinvest module filters.
The expected default rate may change periodically and is only provided as an informative tool, that has the primary purpose of reminding investors that it is inevitable that some loans fall into default and thus cause losses of one or more invested amounts .
Keep in mind that each investment portfolio is unique and portfolio performance may vary. The experience of financing similar loans in the past does not provide any certainty to future results and any information provided by Fagura, including the default rate, should not be treated as investment advice, guideline, or performance guarantee of loans.