February 6, 2023 For investors | News

You can now invest in loans from the Peruvian provider CrediFace on Bondster. The interest rate of investment loans offered is around 14% p.a.

The fintech company CrediFace Perú SAC has been operating on the market since 2015. In Peru, it owns the CrediFace and ValeCasch brands, and in Mexico the CrediOne brand. 

Peruvian CrediFace provides consumer loans to individuals with amounts ranging from $300 to $5,000. The average term of loans issued is currently 18 months. Only people without a negative record in the Credit Bureau can get a loan. The entire loan approval process takes place online and a single signature is all it takes to complete it.

For CrediFace, the quality of the loan portfolio has been one of its top priorities for a long time. When assessing loan applications, it uses state-of-the-art technology. To determine the creditworthiness of a loan applicant, debt, payment morale and a number of other indicators are considered by using its own algorithms. The systems also employ machine learning, which allows for flexible optimisation of evaluation algorithms based on the data gathered from delinquent clients. The percentage of approved applications is around 8%.

Thanks to a precise client scoring system, CrediFace boasts a very robust portfolio that can withstand even extreme external situations. This was well-demonstrated during the coronavirus pandemic when the company’s revenues fell by only a fifth. The non-performing loan rate is only 10% (i. e. only 10 clients out of 100 are more than 30 days in arrears), which is significantly lower than with similar fintech companies.

CrediFace has a goal to gradually grow by 15 to 20% a year while maintaining the current high quality of its loan portfolio. In 2021, the company’s profit reached $478,000, and in 2022, it is expected to exceed $700,000. 

The company is registered with the Financial Intelligence Unit superintendency of Banking, Insurance and AFP. 

Bondster’s analytics team assigned CrediFace a B+ rating.

Author of the article: Roman Muller

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