Credit Risk
The Investment Compartment may face risks of default that may arise from the Investors’ failure to make the necessary repayments on the loans granted, in accordance to the terms and conditions of the respective loan agreement.
Interest Rate Risk
The Investor shall be obliged to pay interest on the principal loan amount. As such, the respective loan agreement will set out the interest rate, the dates on which interest is payable and how interest will be calculated.
In addition to the above, default interest may be payable if the investor fails to pay an amount on its due date. Again, if this is the case, the default interest rate and the manner in which default interest is to be calculated will be set out in the loan agreement.
Business Risk
There is the possibility of Banking Institutions to be used, for the purpose of securing loans to investors, may face operational risk, meaning
