Loan Eligibility Rules For EG Grow
Introduction
1.1. These terms of service (the “Terms”) govern your use of EG Grow. The agreement subject to these Terms is between you (the “Investor) and Estateguru OÜ (registry code 1258919) (“Estateguru”).
1.2. EG Grow is a service of individual portfolio management of loans in the meaning of Article 6 of Regulation 2020/1503 of the European Parliament and of the Council.
1.3. The Estateguru User Terms (the “User Terms”) will continue to apply to your relationship with Estateguru during your use of EG Grow. In case of a contradiction between these Terms and the User Terms, these Terms shall prevail.
1.4. For the avoidance of doubt, these Terms only govern your use of EG Grow, the individual portfolio management service provided to you by Estateguru. Each loan contract that will be selected by the EG Grow application for your portfolio shall be governed by the applicable principal loan terms and General Loan Terms published on Estateguru’s webpage.
Parameters
2.1. By activating EG Grow, you agree that EG Grow may invest your funds in loans with the parameters disclosed to you on the EG Grow page and you need to approve them separately.
Investing via EG Grow
3.1. You invest in loans via EG Grow by depositing an amount of your choice but initially not less than 100 EUR (i.e in order to activate EG Grow investments 100 EUR needs to be transferred to your EG grow account) for EG Grow to allocate into loans in accordance with these Terms and parameters predetermined by Estateguru that you will approve via the user interface. EG Grow will work to allocate your investment into loans in accordance with your mandate.
3.2. Once EG Grow has allocated your funds into loan projects intermediated by Estateguru, you will have made an EG Grow investment. You will earn interest on each EG Grow investment as specified in section 6 “Interest Payments and Repayment of Principal”.
3.3. You will have the option to activate EG Grow reinvestments. For this You will need to toggle the “Reinvestment” button ON. Once reinvesting is activated, all the funds, that reach Your EG Grow account, will be reinvested.
Confirming and Reconsidering Your Mandate
4.1. These Terms, along with the parameters you will additionally approve via the user interface before investment, shall constitute your mandate to Estateguru to conclude loan contracts in your name for your portfolio and to allocate funds into such loans in accordance with these Terms (the “Mandate”).
4.2. The Mandate will be effective and EG Grow will start investing once 4 days have expired from you confirming these Terms.
4.3. During the 4-day reflection period, you will have the right to withdraw your mandate. Bear in mind, however, that if you withdraw your mandate and still wish to use EG Grow at a later time, another mandatory 4-day reflection period will commence before you can invest.
4.4. All subsequent investments will be subject to the initially confirmed investment mandate. As specified in Article 22 (7) of Regulation 2020/1503 of the European Parliament and of the Council, in case of individual portfolio management of loans, a reflection period shall only apply to the initial investment mandate given.
4.5. You are also warned that any changes to your initial mandate are equivalent to giving a new mandate and that you can only continue investing once another 4-day reflection period has expired from the moment you change your mandate.
4.6. Once your funds have been invested by EG Grow, there is no way to withdraw from any investments. Please make sure the terms of your effective mandate are acceptable for you before continuing to invest via EG Grow.
Contingency Fund
5.1. Estateguru has established and operates a contingency fund in the meaning of Article 6(5) of Regulation 2020/1503 of the European Parliament and of the Council for interest payments arising from loan contracts concluded via EG Grow. No principal loan payments will be covered by the contingency fund. Estateguru shall operate the contingency fund as long as it provides the EG Grow service.
5.2. Estateguru shall initially contribute from its own funds to the contingency fund as a one-off payment an amount which corresponds to the expected amount of interest paid to EG Grow investors over a period of 3 (three) months. Thereafter, the contingency fund shall be topped up as follows:
5.2.1. Estateguru shall contribute 50% of the success fee received from borrowers in connection with the loans where investments via EG Grow have been made, at the end of each month;
5.2.2. each Investor shall contribute the following payments (or a portion of a payment) it receives from the borrowers from loan contracts concluded via EG Grow as follows:
5.2.2.1. interest paid by the borrower (including bonus interest payable by borrower, if applicable) on the loans each Investor has invested in via EG Grow to the extent it is in excess of the EG Grow Interest (as defined in clause 6.1 of the Terms);
5.2.2.2. default interest paid by the borrower on loans where each Investor’s funds have been invested via EG Grow (if applicable) to the extent it is in excess of the EG Grow Interest (as defined in clause 6.1 of the Terms);
5.2.2.3. penalties, costs, damages and fees paid by the borrower on loans where each Investor’s funds have been invested via EG Grow (if applicable).
5.3. The Investor hereby authorises Estateguru to deduct the amounts referred to in clause 5.2.2 of the Terms from the relevant payments the Investor receives from the borrowers during the use of EG Grow and contribute them to the contingency fund. After accepting these Terms, the Investor will have no rights related to the payments referred to in clause 5.2.2 of the Terms. For the avoidance of doubt, loan principal shall not be subject to any deductions and shall be returned to the Investor once paid by the borrower.
5.4. Estateguru shall make EG Grow Interest payments to the Investors from the contingency fund (to the extent there are available funds in the contingency fund) in case the same amount has not been paid by the borrowers in accordance with the loan contracts concluded via EG Grow. Estateguru does not guarantee that there are sufficient funds in the contingency fund to make EG Grow Interest payments to all Investors who are eligible for payments. In case there are insufficient funds in the contingency fund to make EG Grow Interest payments to all Investors who are eligible for payments from the contingency fund, Estateguru shall make the payments pro rata to the claims of each Investor at such time.
5.5. The funds in the contingency fund shall be allocated to a separate payment account opened in the name of Estateguru. The funds shall not be invested or used for any other purpose than prescribed in the Terms. The funds in the contingency fund belong to Estateguru and will be treated as Estateguru’s assets in the event the EG Grow service is terminated or in the case of insolvency of Estateguru.
5.6. The contingency fund Estateguru offers does not give you a right to a payment so it may happen that you do not receive a pay-out even if you suffer loss. Estateguru as the contingency fund operator has absolute discretion as to the amount that may be paid, including making no payment at all. Therefore, the Investors should not rely on possible pay-outs from the contingency fund when considering whether or how much to invest.
Interest Payments and Repayment of Principal
6.1. The Investor receives interest payable to the Investor under the loan contracts concluded via EG Grow on a monthly basis (hereinafter “EG Grow Interest”). The interest rate due to the Investor from investments made via EG Grow is the rate displayed on the platform on the day you invest. Payments made by the borrowers under the loan contracts concluded via EG Grow which exceed this rate shall be allocated to the contingency fund in accordance with clause 5.2.2 of the Terms.
6.2. EG Grow Interest accrues on the part of your investment which has been allocated into disbursed loans via EG Grow. The accrual of EG Grow Interest starts on an allocated amount when Estateguru has transferred the amount to the specific loan account. For the avoidance of doubt, this means that EG Grow Interest shall not accrue on your full investment amount from the day of investment, but rather starts to accrue on the loan amount of each individual loan underlying your investment from the day the amount reaches the loan account.
6.3. The lock-in time for EG Grow to allocate your funds is 14 days from the moment you have transferred funds to your EG grow account for the first time. Once 14 days have passed, any unallocated funds will be made available to withdraw. During this period you will not have access to the amount that you have transferred to your EG Grow account. Lock-in period will be applied to ensure sufficient time to allocate your funds with the purpose of creating a well-diversified portfolio.
6.4. EG Grow Interest is paid to your EG Grow account on a monthly basis in accordance with the Terms.
6.5. The interest payment date shall be the date in each following month determined by Estateguru. On that date Estateguru will pay out the interest amount accrued during the previous month.
6.6. EG Grow Interest is paid to the Investor on funded loans, including loans that fall into default (to the extent there are funds available in the contingency fund), until the borrower repays the principal or until the claim for repayment of principal is deemed irrecoverable.
6.7. The principal invested will be returned to you by the borrower according to the payment schedules of the loans underlying your investment, unless the borrower defaults on their obligations in which case the loan enters Estateguru’s procedure for recovery of defaulted loans. Principal repayment dates will be indicated in the individual loan agreements concluded with the borrower.
6.8. Estateguru is allowed to pause EG Grow Interest payments indefinitely in the following situations:
6.8.1. any know-your-client or anti-money laundering requirement of Estateguru has not been met by the Investor;
6.8.2. the Investor fails to duly fulfil any other obligation under these Terms, the User Terms or the General Loan Terms and does not remedy the violation within a reasonable term granted by Estateguru;
6.8.3. Estateguru wind-down procedure (different from EG Grow wind-down referred to in clause 11.3) is activated. In this case any active loans underlying EG Grow investments will be moved to your regular Estateguru portfolio. This also means that the EG Grow contingency fund and contributions thereto shall no longer apply and you will start receiving interest payments solely from the borrower on such loans;
6.8.4. Due to reasons related to regulations applicable to Estateguru or due to other unforseeable extraordinary circumstances.
Investment Risks
7.1. Your capital is at risk when investing into loans using EG Grow. An investment in a crowdfunding project includes the risk of losing the entirety of the money invested.
7.2. By accepting these terms, you acknowledge that you have received and understood this warning.
7.3. You can learn more about investment risks by examining the information published on Estateguru webpage under the Risk Disclosures.
No Early Exit
8.1. Estateguru does not facilitate an early exit for investments made via EG Grow. Loans where the Investor’s money is invested via EG Grow cannot be sold on the secondary market.
8.2. Once EG Grow has invested in a loan, you are locked into your investment until the borrower fulfils their obligations or until remaining claims against the borrower are deemed irrecoverable.
Right to Information
9.1. Estateguru shall provide the Investors access to information on their EG Grow portfolio on a continuous basis through the portal or through Estateguru’s customer support. To receive information on the loans in your EG Grow portfolio, you should make an inquiry to info@estateguru.co .
9.2. Estateguru shall provide the following information about the performance of the contingency fund to the public on a quarterly basis:
9.2.1. the size of the contingency fund compared to the total amounts outstanding on loans relevant to the contingency fund; and
9.2.2. the ratio between payments made out of the contingency fund to the total amounts outstanding on loans relevant to the contingency fund.
10. Liability and Indemnification
10.1. For the avoidance of doubt, it is hereby expressly agreed between the Investor and Estateguru that Estateguru is only liable to pay EG Grow Interest as specified in section 56 and Estateguru is not required to pay and the contingency fund does not cover the payment of loan principal. Estateguru cannot be held liable for any loss of principal, interest (including EG Grow Interest) or any other amount should the borrower default on their obligations, provided that Estateguru has duly performed its explicit obligations under these Terms.
10.2. The liability of Estateguru is limited to the maximum extent permitted by law. Estateguru is not liable for any indirect damage, including loss of profit, such as loss of interest income.
10.3. Furthermore, to the extent Estateguru can be held liable for any damage, their total liability shall be limited to the amount of the aggregate interest received by the Investor in accordance with these Terms. This means that regardless of the type and cause of damage, an Investor can only claim damage compensation to the extent of received interest. Estateguru’s liability is not limited if, in the course of performance of the Terms, the damage to you was caused by gross negligence or intentionally or your death or personal injury was caused.
11. Termination
11.1. You can stop making new investments via EG Grow at any time. However, any investments already made will remain in your user account until the borrower fulfils their obligations or until remaining claims against the borrower are deemed irrecoverable.
11.2. You also have the right to close your user account entirely. However, closing your user account is irreversible and you will forfeit your investments (see section 20 in the User Terms).
11.3. Estateguru shall have the right to terminate the EG Grow service at any time by triggering the EG Grow service wind-down period. The wind-down period will be 18 months from a notice served by Estateguru to the Investor triggering the wind-down period. Estateguru may stop accepting any new investments via EG Grow from the date of triggering the wind-down period.
11.4. During a period of 18 months from triggering the wind-down period, Estateguru will continue to pay EG Grow Interest to the extent relevant payments are made by the borrowers under loan contracts concluded via EG Grow and there are available funds in the contingency fund. After expiry of said term, payment of EG Grow Interest as specified in clause 6.1 shall cease and any active loans underlying EG Grow investments will be moved to your regular Estateguru portfolio. This also means that the contingency fund shall no longer apply and you will start receiving only interest payments from the borrower on such loans.
12. Amendments to the Terms
12.1. These Terms may be amended unilaterally by Estateguru with at least 30 days notice.
12.2. Amendments to these Terms will be executed in accordance with the following procedure:
12.2.1. Estateguru will send to the Investor an e-mail informing the Investor of the planned amendments and the date of their entry into effect;
12.2.2. in the e-mail Estateguru will inform the Investor of their right to terminate the use of EG Grow or the Estateguru portal;
12.2.3. on the date specified in the e-mail and unless the Investor has terminated the use of EG Grow or the Estateguru portal, the amendments will become binding to the Investor without any further action being required on part of Estateguru.
13. Complaints Handling
13.1. If you wish to make a complaint regarding EG Grow, please refer to the Estateguru’s Complaints Handling Policy.
14. Severability
14.1. In case of invalidity of any part of these Terms, the validity of the rest of the Terms shall remain unaffected.
15. Waiver and Remedies
15.1. The failure or delay by any party in exercising any right or remedy under these Terms shall not constitute a waiver of that remedy. No single or partial exercise of any right or remedy shall preclude any other or further exercise of it or the exercise of any other right or remedy. The rights and remedies provided in these Terms are cumulative and not exclusive of any rights or remedies provided by law.
16. Applicable Law and Dispute Resolution
16.1. These Terms are subject to Estonian law.
16.2. The loan contracts concluded via EG Grow shall be subject to the law the respective loan contract falls under as specified in the specific loan’s principal loan terms or General Loan Terms.
16.3. Any dispute arising from these Terms shall be resolved by Harju County Court in Tallinn, Estonia, unless another court has jurisdiction by law.
Check loan details, invest and start earning passive income.