How does the concluding a loan agreement at an auction work?

A procedure of concluding a loan agreement in the portal where the terms and conditions of loan bids of investors compete for the best suitability with the terms and conditions laid down by the borrower in the loan application.

The auction starts after the portal administrator has completed the control activities with respect to the loan application and activated the auction in the portal. 

The auction lasts until the end date set out in the loan application. Fast ​​auction ends before the end date of the auction at the moment when the last necessary loan bid is submitted to the action for fulfilling the maximum loan amount set out in the loan application. 
In addition to the data provided in the loan application, the portal administrator notifies the users of the credit score assigned to the borrower and the loan servicing ratio. 

During the auction, portal users can ask for additional information from the borrower who submitted the loan application, whereas the questions and answers can be seen by all users. 

The auction is won by the loan bid with the lowest minimum interest rate. In case of bids with equal interest rate, the loan bid that is submitted earlier wins. If a borrower has in the loan application expressed a desire to conduct an fast auction, the auction winner is determined solely on the order of submission of loan offers. 
The auction is deemed to have failed and the loan agreement is not concluded as a result of the auction, if at the end of the auction, the total amount of loan bids is lower than the minimum loan amount defined in the loan application. 

At the end of the auction, the portal administrator discloses the following information to the persons who participated at the auction:

  • discloses to all users participating in the auction the loan amounts and interest rates of the loan bids that won the auction, as well as the usernames of investors who won the auction, 
  • makes available to the investors who won the auction, the loan application and the general terms and conditions of the loan agreement confirmed by the borrower,
  • prepares an informative uniform loan agreement document (including the payment schedule), which summarizes the final terms and conditions of the loan agreement formed as a result of the auction on the basis of the loan application and loan bid(s) ,, and makes it available through the portal to the borrower and investor(s) who have concluded the loan agreement; this informative uniform loan agreement document includes the complete personal data of the borrower, but only the portal usernames of the investors, 
  • if several investors participate in the loan agreement on the lender's side, the portal administrator makes the individual payment schedule available in the portal for each such investor, showing the payments that this particular investor is entitled to according to the loan agreement.

The obligation to transfer the loan amount under the loan agreement by the investor (i.e., the lender) is deemed to be fulfilled and the loan amount transferred to the borrower with the transfer of the funds to the borrower's portal account. The corresponding transfer is made by the portal administrator as the authorized representative of the investor within one (1) hour from the end of the auction. 

The portal administrator is entitled to satisfy on the account of the loan amount transferred to the borrower's portal account, the claims of the portal administrator and other users against the borrower that have become due. 

Before the borrower can transfer the loan amount from his/her portal account to his/her bank account, the borrower must confirm the informative uniform loan agreement document of the general terms and conditions. The confirmation of this document and the transfer of funds from the borrower's portal account to the borrower's bank account, or the fact that the borrower has not performed these actions, does not change the time of concluding the loan agreement nor affect the validity of the loan agreement.

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