SMART principles are real practices in the Microinvest team

If you want to learn more about a company, get to know the real people who work in it. Olga is the head of the Business Department at Microinvest, and she implements the international Client Protection Principles in lending daily at the team level, as well as in her work with clients

Olga, what do the international Client Protection Standards mean to you?

That’s a good question. The first association that comes to mind is “change” and “responsibility.” In 2016, when I joined Microinvest, I immediately realized that I had become part of a team striving for radical changes in non-bank lending and would implement them. In such a short period we managed to increase our portfolio from MDL 245 million to 2.8 billion and the number of active clients from 10,000.00 to over 42,000.00. Now that our influence on the market has become more significant, it is more important than ever to comply with the international Client Protection Standards, as more and more people seeking to achieve their goals choose our products with confidence. We set the standards for the market and set the pattern.

How did the history of international Smart certification for Microinvest begin?

Microinvest first received SMART Certification in 2015. To get it, the Company underwent due diligence to prove to the Center for Financial Inclusion (CFI) that it fully deserves the title of a responsible lender. I didn’t participate in the first certification, but I was part of the team that validated the certification in 2018. That process consisted of several stages: analysis of the Company’s internal regulations and procedures, its work processes and specific contracts with clients, visits, and discussions with colleagues and clients organized by the international team. We passed them all successfully. This year we confirmed this title for the third time, and we are proud to be the only Smart certified financial institution in Moldova.

Today more than 150 non-bank lending institutions are operating in Moldova. How does Microinvest differ from its competitors in the market?

By its attitude towards customers. Microinvest finances both entrepreneurs and individuals, striving to establish long-term relationships with everyone. We consider each loan as cooperation based on openness and respect. It can be difficult to comply with these principles, especially when competition in the market is not always fair. We deliberately chose the role of a reliable lender for our clients. That’s what makes us different.

The 7 principles are applied in day-to-day interaction with Microinvest clients. How did you manage to integrate them into the Company’s activities?

I can say more, SMART is not just principles, but the way we work every day, part of the Microinvest culture. The due diligence for the Smart certification showed us that we’ve followed the principles of customer protection before because we saw it as the right lending formula that we’ve adhered to. After receiving the certificate, we made some changes to become even better: we focused on training our team so that they clearly understood and could explain the terms of loan agreements to customers as plain as possible; we added new channels through which customers can apply with their recommendations and complaints. We have made sure that these principles were not complex rules but were followed “intuitively” as part of the Company’s culture.

In your opinion, what is the most important principle without which it is impossible to cooperate productively and reliably with clients?

It’s hard to choose one principle, they are all logically related to each other. Let’s look at the example of buying a car since many of us are faced with this experience in one way or another. To get real pleasure from the purchase, the car must meet several criteria at the same time. To suit you both technically and functionally, have no hidden defects, have optimum fuel consumption, and affordable maintenance. It is very difficult to understand all these parameters and find the best option. You need a real expert you can trust. It’s the same with loans. The company you apply to should be transparent, fair, provide you with an appropriate product format and objectively formed prices, and, in case of unclear situations, be open to resolving them. That’s how all our lending processes are built.

If you highlight a certain principle, then, in my opinion, one of the main ones is to prevent the over-indebtedness of the client. I still remember the story of a man who decided to sell his house because of a lot of debts. He was not our client, but his story made a deep impression on me. It is a difficult and unpleasant situation from which we want to protect our customers. When we, Microinvest employees, come to work, we want to help other people achieve their goals and experience only the benefits of lending.

What other practices are you planning to implement at Microinvest to maintain its position as a lender that cares about its customers?

Above all, we want to remain a lending institution that people can trust, regardless of current problems or competitive conditions. We take responsibility and care for our customers, and we try to contribute as much as possible to the financial education of the society in which we live. Every year we participate in the international financial education campaigns: Borrow Wisely (organized by MFC) and Global Money Week (organized by OECD), during which we hold a series of events and give useful recommendations to current and potential clients on how to turn credit into an advantage. We don’t stop there because responsible lending has become a lifestyle for Microinvest – a lender who cares about you.

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Client's Name
Client's Surname
Personal Identity Number
Currency
Term
Rate
Amount
Monthly payment
Amount to receive
Purpose
Comments

1. Name and Contact Information of the Creditor
Creditor
Address
Phone number
Email Address
Web page

3. Costs of the credit
Rates related to the credit
Annual Percentage Rate of Charge (APR) This is the total cost expressed as an annual percentage of the total amount of credit. The APR is there to help you compare different offers	%
In order to obtain the loan in accordance with the agreed terms and conditions, it is mandatory to conclude an insurance contract to guarantee the loan or a contract for another ancillary service.
Related costs
Any other costs deriving from the credit agreement	Fee for services rendered in relation to usage of credit, calculated and paid as follows: of the credit and paid by the Debtor on the date of granting the credit from own sources or is deducted by the Creditor from the amount of the credit The negotiation / prolongation of the credit can take place by mutual agreement of the parties, by signing an additional agreement, the Creditor being entitled to request an increase in the interest rate within the limits provided by the legislation in force. In case of negotiation / prolongation of the loan, the Borrower shall pay to the Creditor, at the date of the negotiation / prolongation a commission in the amount of 2% from the credit balance at the time of negotiation / prolongation.
Conditions under which the costs related to the credit agreement can be changed	The Sides can change the costs related to the credit by written agreement signed by both parties; For the non-constitution of the guarantees within the agreed term, the Creditor is entitled to calculate, and the Client will pay to the Creditor an Interest of delay in the amount of 5% annually, applied to of the daily balance for each day of delay, starting with the date following the term established for the constitution of the guarantee/ s and until the date of the proper execution of the respective obligation.
Obligation to pay for notarial fees / mortgage registration fees / fees for noting the prohibition of pledge in the Transport Register related to the pledge of means of transport (agricultural machinery)	Paid by the Client , except as otherwise provided in the pledge / mortgage agreement.
The cost for the valuation of real estate proposed in pledge	Paid by the Client directly to the Evaluator
Costs in the case of late payments Missing payments could have severe consequences for you (e.g. forced sale) and make obtaining credit more difficult
The repayment of the loan is free of charge in the secondary offices of the Creditor, as well as at the discretion of the Debtor through the representatives authorized to collect loan payments. The list of which and their fees are published on the website of the Creditor (www.microinvest.md/cum-achiti-creditul/). In case the Debtor use payment methods with fee, the Debtor cover all the costs of repayment of the loan and undertake to make the payments in such a way that the Creditor receives the agreed repayment amount and without any deductions by third parties processing the refund payment.
In accordance with and arising from the provisions of art. 15, para. 7), lit. a) from Law no. 202/2013, any payments related to the granted credit (commissions, taxes, penalties, late interest and any other type of payment), except interest, will be applied and collected within the limit of the ceiling of 0.04% of the total value of the credit per credit day multiplied by the number of days of actual use of the credit (hereinafter 'Ceiling'). Therefore, the Lender will be entitled to apply and collect the costs, excluding interest, exactly in the fixed or percentage amount established in the contract if the said ceiling allows, and if the ceiling is lower than the value of at least one cost, excluding interest, then the Lender will be entitled to reduce the fixed/percentage amount and apply and collect any of the applicable costs only within the limit of the ceiling value. When calculating the ceiling, the costs already applied and collected will be taken into account, with the exception of interest, which reduces its value. (Representative example: if the amount of the penalty is 20 MDL per day, and the ceiling value at that time is 16 MDL, then a maximum of 16 MDL will be collected).

4. Other important legal aspects
Right of withdrawal You have the right to withdraw from the credit agreement within a period of 14 calendar days	Yes
Early repayment You have the right to repay the credit early at any time in full or partially	Yes
The creditor is entitled to compensation in the case of early repayment The Debtor may repay the loan in full or in part in advance, notifying the Creditor in writing 3 days in advance, and paying an early repayment fee of:	% from early repaid amount, if the period of time between the date of early repayment and convened maturity exceeds one year; % from early repaid amount.The early repayment can be made only if the Debtor has no outstanding debts on interest or other amounts to be paid in accordance with the Contract. % from early repaid amount, if the period of time between the date of early repayment and convened maturity does not exceed one year.
Database usage The creditor must inform you immediately and without charge of the result of a consultation of a database, if a credit application is rejected on the basis of such a consultation. This does not apply if the provision of such information is prohibited by law or is contrary to objectives of public policy or public security The parties may agree on additional terms and conditions, which will be included in the credit agreement.	Yes
Right to a draft credit agreement You have the right, upon request, to obtain a copy of the draft credit agreement free of charge. This provision does not apply if the creditor, at the time of the request, is unwilling to proceed to the conclusion of the credit agreement with you	Yes
The period of time during which the creditor is bound by the pre-contractual obligations	This offer is valid for 15 calendar days after it is issued.
In this regard, I subsequently declare that: I was provided with the necessary information, the essential characteristics of the above-mentioned credit product were explained (interest rate, number of commissions, credit costs, early repayment conditions, total amount to be paid), as well as the consequences of non-compliance with contractual clauses; the costs included in the total cost of the loan were explained to me, including the costs for ancillary services related to the credit agreement; I was offered the possibility to negotiate individually the contractual clauses in the credit agreement that I intend to sign, I negotiated individually the granting commission, the monthly commission, the amount of penalties and I mention that its clauses do not disadvantage me, being fair in the report mine with the creditor; I was asked by the creditor about the probable importance of the information provided and whether essential circumstances that I expected to be provided were not omitted in order to make an informed and rational decision about concluding the potential credit agreement. the information provided and the corresponding explanations allowed me to assess, including the personal analysis of other offers of third party creditors, whether the proposed credit agreement is tailored to my needs and financial situation; I know the content of the contract and all its conditions have been explained to me, I have understood and accepted them, and the documents and information underlying the conclusion of the contract are complete and accurate; I know the law, the normative acts that will govern the contract, as well as the lack of consumer quality; I have no ambiguities or misunderstandings regarding the terms of the contract; the credit product corresponds to the purpose described above and will be used according to the destination and the economic activity carried out. The assets procured/resulted/constructed/repaired from received loan sources will be registered/transmitted in the social capital of the company where my business activity is carried out and/or will be used jointly by the members or individually however strictly for running my business activity. (Signature)