MytripleA is the only crowdlending platform where you can invest lending your money to companies with profitability guaranteed by Reciprocal Guarantee Societies or SGRs. These are the guaranteed investments and you can find them in the “Market” section with the “Guaranteed” label.
In this article, we tell you how they work and we break down their security structure. Let’s go see Champion Personal loans!
What is the investment guaranteed by SGR?
Through MytripleA you can invest in loans guaranteed by SGR that have the following characteristics:
- Loans guaranteed by Reciprocal Guarantee Companies, which are in turn reawakened by CERSA, an entity that is counter-guaranteed by the European Investment Fund.
- Guaranteed profitability from 2% + Euribor (revisable annually and with zero ground).
- Return in monthly installments that are composed of capital and interest. You will find in the information of each loan the total term of the investment (from 36 to 60 months).
- If a fee is not paid and 90 days pass, the SGR will pay the investor that fee (capital plus ordinary interest) within a maximum period of 60 days.
We have more in detail the security structure of these operations.
The security structure of the operations guaranteed by SGR
At MytripleA we have an agreement with SGR distributed throughout the national territory, which guarantees 100% of the capital and interest on the loan that has this guarantee.
The Reciprocal Guarantee Societies or SGR have as an exclusive corporate purpose to guarantee operations to SMEs and have been operating in Spain for 30 years in favor of the bank, with 0% of bankruptcies.
These companies ensure 100% of the principal and ordinary interests. The guarantee is granted in the form of a joint and several guarantees for the first demand.
These entities are supervised by the Bank of Spain, with solvency ratios higher than banks, and are also re-evaluated by CERSA (Spanish Refinancing Company) that covers a percentage of the risk assumed by the SGRs (40% of the risk is revamped by CERSA approximately ). CERSA is an entity attached to the Ministry of Economy, Industry, and Competitiveness and in turn, receives the counter-guarantee from the European Investment Fund (EIF).
In this way, each guaranteed investment operation offered by MytripleA is secured by an SGR, reinsured by CERSA, which is counter-guaranteed by the FEI.
The transactions guaranteed by SGR are identified in Circular 4/2016 of the Bank of Spain as operations “without appreciable risk”. This category of “no appreciable risk” includes transactions with Central Banks, Group 1 Central Administrations and European deposit guarantee funds, among others.
See Circular 4/2016, point 83F on page 37
We tell you all the contractual structure of this type of operations:
Contract of Payment and Mandate Services
MytripleA carries out the following actions on behalf of investors:
- The signing of the loan agreement and guarantee
- The collection of fees and execution of the guarantee (if applicable).
- Other related actions of the loans (notifications, etc …)
Investors transfer the money to invest in the MytripleA payment account.
- MytripleA has the Paying Entity license nº6869 (see Bank of Spain Entities Registry)
- The money deposited in said account by the investors is “protected” and enjoys a right of separation by law (see Article 10 Law 16/2009)
MytripleA signs the loan contract on behalf of the investors and transfers the money to the SME, collects the quotas established in the contract and distributes them to the investors.
SGR guarantee agreement
MytripleA signs the guarantee contract for which the SGR secures the loan.
In your case of delay, MytripleA executes the guarantee and distributes the money to the investors.
* The contracts are available to investors registered in the section Legal Terms
The investors are the holders of the loan rights of the loan and the final beneficiaries of the Guarantee.