Loan classification by the risk of default (NPL 30, 60, 90, 120+)

The companies of the IT Smart Finance holding use scoring models to determine the quality of borrowers.

  • AA
  • A
  • BB
  • B
  • CC
  • C
  • closed on time
  • closed ahead of schedule
  • NPL 0-30
  • NPL 30-60
  • NPL 60-90
  • NPL 90-120
  • Low-risk loans. As a rule, clients of this category return the money on time or ahead of schedule, so the profitability on them is low, but the risks are also low.
  • Medium risk loans. Clients of this category can make payment delays (NPL 30 and NPL 60), but almost always return the loans in the end. The risk of default for this category is higher, but the average income is also higher.
  • Loans with an increased level of risk. In this category, there are NPL 60, NPL 90, NPL 120 and loans under litigation, that provide the maximum profitability among all the categories.

All approved loans are appropriately classified and sorted out according to the investment strategies.
Once a month the Risk Committee analyses and adjusts the process of loan classification assignment.

The Flexible Investment product
provides three investment strategies

Each investment strategy automatically selects the appropriate type of loan risk. Each strategy can include up to 3 types of NPL, which allows to get the declared income and to ensure the corresponding risk requirements.