A user who wants to borrow money from other portal users (loans are currently available for Estonian customers) fills out a loan application in the portal, in which he/she publishes data required by the portal administrator.
Inter alia, the borrower submits the following information:
- minimum and maximum amount of the loan,
- maximum interest rate,
- loan repayment maturity date,
- intended use of the loan,
- monthly payment date,
- time of payment of the first installment,
- auction end date,
- type of payment schedule.
On the basis of the completed loan application the Standard European Consumer Credit Information form is generated and made available to the borrower in the portal, with the obligatory pre-contractual information about the basic data of the loan agreement (including the loan amount, maturity, maximum annual percentage rate based on the data of the application, loan-related fees, total amount to be paid, etc).
Along with the loan application, the borrower is required to provide his/her bank account statement certified by the bank about his/her income and expenditures in the last six (6) months.
If the borrower has not approved the loan application within three (3) days from the date when the portal administrator submitted to the borrower the general terms and conditions of loan agreements and the information form, the data of the loan application is deemed to be outdated. If the borrower wishes to apply for a loan, he/she must submit a new loan application, updating the data of the former loan application.
If the portal administrator has established in its price list any fees for submitting a loan application and/or conducting a credit check, the user shall pay the corresponding fees prior to the further processing of the loan application by the portal administrator. The price list is available on the website of the portal administrator www.monestro.com
After the receipt of the service fees, the portal administrator carries out the following actions on the basis of the confirmed loan application, inter alia:
- verifies on the basis of the bank account statement and other legally available sources the accuracy of the loan application data and its compliance to the general terms and conditions,
- conducts the borrower's creditworthiness analysis on the basis of the loan application data, on the basis of the bank account statement and on the basis of public data,
- verifies the validity of the submitted identity document, ֝
- performs the assessment of the borrower's creditworthiness in accordance with the requirements of law,
- calculates the borrower's credit score.
The user cannot submit a loan application if at the same time, a loan application submitted by the same user earlier is being processed or being auctioned.
A loan application confirmed by the borrower is the borrower's declaration of intention, i.e. an offer to conclude a loan agreement, and if the auction is successful, the loan agreement is deemed to be concluded automatically between the borrower and the investors who won the auction.