⚠ Notice: Credit Risk in Investment

At The Lending Hub, we believe in the importance of transparency with all our users.

Investing in individual financing through the platform may inherently involve credit risks, which could affect the expected returns or even the investor's principal capital.

Despite our commitment to applying strict risk management policies in accordance with the regulations approved by the Saudi Central Bank, investment remains exposed to factors beyond our control.

Investors are advised to consider their risk tolerance before making any investment decisions.

What is meant by credit risk?

It is the likelihood that the beneficiary fails to repay part of the financing or delays repayment within the specified time, due to several reasons, such as:

  • Changes in the beneficiary’s financial situation
  • Loss of income source
  • Accumulation of financial obligations
  • Weak commitment to repayment

What does the platform do to reduce these risks?

Accuracy in risk evaluation

Each financing request undergoes a comprehensive analysis that includes:

  • The beneficiary’s financial condition
  • Credit report
  • Monthly obligations
  • Employment and income information

Clear credit score visibility

Requests are classified based on the level of credit risk:

Rating Risk Level
A Very low risk
B Low risk
C Medium risk
D High risk

The expected return is directly correlated with the level of risk — the higher the risk, the higher the interest.

Procedures for dealing with default:

In case the beneficiary delays repayment, the following steps are taken:

  • Continuous communication and follow-up with the beneficiary
  • Activation of the promissory note when needed
  • Legal procedures in case of non-compliance

Important Summary:

Peer-to-peer crowdfunding provides rewarding investment opportunities, but it does not come without risk.

We advise diversifying your investment portfolio and avoiding reliance on a single opportunity, to reduce the impact of any potential default.