Frequently asked questions

Each application and its documentation are evaluated based on internal and risk assessment schemes. Borrower’s reputation is not only assessed based on the real estate and other assets owned that would be used as collateral, but also by checking the creditworthiness, financial liabilities, various registries whether there are or have been any lawsuits/cases/financial crimes, etc. that may have an impact on the financial reliability of the borrower.

Based on the assessment algorithms, any of the following categories may be given to the project owner:

Class 1 (A) (Very good) – low credit risk

Class 2 (B) (Good) – medium credit risk

Class 3 (C) (Average) – higher credit risk

Class 4 (D) (Poor) – high credit risk

Class 5 (E) (Very poor) – credit risk too high

A risk level assigned is indicated in the project details and the project owner’s description.

Crowdpear has a right to decline a funding request if a project is considered too risky, compelling, or for any other reason, that may remain disclosed.

Crowdpear ensures that every project is secured by the real estate pledge or other guarantees. However, an investor has to evaluate the fact that capital and income gained from all investments are at risk.

It is important to note that investments completed on the Crowdpear platform are not covered by the law on insurance of deposits and liabilities to investors in Lithuania.

For more information, please refer to the ‘Description of risks related to investment in Crowdpear platform’ document.

Every project on the Crowdpear platform is covered by a primary or secondary mortgage on real estate or other guarantees (such as a pledge on other assets, personal surety, or guarantees). The type of guarantee applied may be seen in every project’s details and may differ for each investment.

It is important to note that investments on the Crowdpear platform are not covered by the law on insurance of deposits and liabilities to investors in Lithuania.

Yes, if the borrower would delay the payments or would be unable to repay the loan on time.

Investors would be informed in case of a non-standard situation of borrowers delaying the payments or not being able to repay the loan on time. For every day of the delay, the initial interest + an additional 5% yearly interest would be applied for each investment, and the legal recovery process following the normative acts valid in the Republic of Lithuania would be initiated.

In case a borrower would not be able to repay the loan, and no solution would be found directly between the borrower and Crowdpear (for example, refinancing of the loan), the legal recovery process following the normative acts valid in the Republic of Lithuania would be initiated.

For every day of the delay, the initial interest + an additional 5% yearly interest would be applied for each investment.