Credit risk refers to the possibility of financial loss due to the beneficiary’s failure to repay their obligations. Such risks may result in the investor losing part or all of the invested capital.
Causes of default can be varied and include:
Creditworthiness reflects a borrower’s ability to fulfill their obligations based on their credit history, monthly income, existing financial liabilities, and personal expenses. A lower credit score may indicate a higher likelihood of default.
This refers to the ratio of a borrower’s monthly financial obligations compared to their monthly income, which can lead to an inability to repay on time.
Such as job loss, disability, injury, death, company bankruptcy, or any unforeseen circumstances that may affect the borrower’s ability to repay.
We apply a comprehensive credit risk management approach aimed at minimizing exposure through the following:
We utilize advanced tools to assess the credit risk of borrowers based on
Moneymoon is fully committed to the Responsible Lending Principles issued by the Saudi Central Bank (SAMA), ensuring accurate assessment of each borrower’s repayment capacity. Based on this evaluation, a funding limit is set that aligns with their creditworthiness.
Investors on the Moneymoon platform acknowledge that peer-to-peer lending carries inherent risks, and that neither the capital nor returns are guaranteed. While we utilize advanced analytical tools and follow strict acceptance criteria to mitigate risk, investments may still be subject to partial or total loss.
