How does Uploan assign an interest rate on your loan?

When applying for a loan, it is important to know how the loan process works and what other costs are involved.

Here in Uploan, we use a credit scoring system to assign interest rates on an individual basis. This will depend on several key factors of a borrower’s personal credit profile.

So when you apply for a loan with us, you will have different interest rates with other borrowers because this will vary on your personal credit profile such as your loan payment history,  employment details, and other financial obligations.

We use this as a reference to know how potential borrowers manage their loans. In general, we make sure to assess an individual’s creditworthiness to know if they are a responsible borrower.

When you have a good credit score, your borrowing experience will be easier, faster and you get lower interest rates with longer repayment terms.

Uploan’s partnership with the Credit Information Corporation

The Credit Information Corporation or CIC is a government-owned body that gathers all borrower’s credit data from various lenders. They act as a public credit registry to provide a reliable and standard information about credit history and financial condition of borrowers.

Uploan partnered with CIC to help further strengthen our credit scoring system. Thus, we can thoroughly evaluate your financial condition and history to assess your loan application.

What is the Debt-to-Income Ratio?

We care about your financial wellness and we want to make sure that your monthly loan repayment will not exceed your Debt-to-Income ratio or DTI. This is the maximum percentage that goes to your loan repayment with Uploan.

We make sure you take home at least 50% of your salary each month.

To help you avoid getting over-indebted, Uploan also gives you flexible loan terms from one (1) month up to 36 months.

Here’s an example

Amy and Jake are coworkers at the same company and are both eligible to apply for a loan with terms of 6 up to 12 months.

Borrowers’ loan terms will depend on the details of their submitted loan application that is verified by our loan officers.

Now, Amy has a 0.5% interest rate assigned to her based on her credit score.

Let’s assume that based on her application and credit history, she never missed a payment on any of her bills and other financial obligations, so she is considered as a good payer and a responsible borrower.

While Jake has a 1.99% interest rate assigned to him. Based on his application and credit history, he has a record of late payments.

According to our credit scoring system, Amy’s score is higher than Jake’s. She has been approved for her loan within 24 hours and got the lowest interest rate of 0.5%.

To give you a clearer overview, you can watch this short video.

Tips on how to improve your credit score

Like Amy, we all want a lower interest rate when we apply for a loan and be approved within a short period of time, and in order to achieve that, we must have a good credit score.

So just like Amy, you can start improving your credit score by never missing a payment on any of your credit accounts or debts.

You can be a responsible borrower by being able to manage your finances and applying for a loan only when necessary or borrowing only for the right reasons.

Most of all, maintaining a healthy amount of flowing credit. You can start taking on a small amount of credit that you can pay off regularly to show that you’re responsible with your finances.