How does CEO determine interest rates?

For loan products, that show a range of interest rates in the table below, you may be wondering how a specific loan is assigned a fixed interest rate. This article attempts to explain the various discounts that CEO makes available to our borrowers.

There are 4 main categories of interest rate discounts:

1. "Fresh Start" discount - In line with CEO's mission of supporting newcomers, this (-1%) discount is offered to applicants who entered the US as a humanitarian migrant (refugee, asylee, parolee, SIV, etc. as defined by ORR) and have been in the US for less than 2 years at the time of loan application. Documentation to prove US entry date and status is required to apply this discount. This discount is only applicable to the following loan products:
   • Personal Loans
   • Auto Purchase Loans (Not Refinance)
   • Education and Training Loans
   • Immigration Loans 
2. Good Credit discount - As a way to incentivize our borrowers to care about credit, we offer discounts if an applicant has at least a minimum FICO score at time of loan application. Depending on the product, the discount amount at exact FICO score varies. Check out each individual loan product article to see details of the FICO discounts. Note: all credit inquiries are run by CEO at time of loan application via TransUnion. This discount is only applicable to the following loan products:
   • Personal Loans
   • Auto Purchase Loans
   • Auto Refinance Loans
   • Immigration Loans
   • Business Loans
3. Downpayment or Loan-to-Value (LTV) discount - For loans with collateral, we offer discounts when the loan amount is fair relative to the value of the collateral. The way this works is in 2 different ways.
   1. For auto purchases from a dealer - we use downpayment as the metric to determine discounts as follows:
      1. If downpayment > 10% = (-1%) discount
      2. If downpayment > 20% = (-2%) discount
   2. For auto refinance or private-party purchases - we use loan-to-value (LTV) as the metric to determine discounts as follows:
      1. If LTV < 90% = (-1%) discount
      2. If LTV < 80% = (-2%) discount
   3. Please note this discount cannot be realized until we have copy of the bill of sale from the dealer for the car that you wish to purchase or payoff quote for refinance. This discount is only applicable to the following loan products:
      • Auto Purchase Loans
      • Auto Refinance Loans
   4. Business Loan discounts - For business loans we have the following options that may lead to interest rate discounts. 
      1. FICO score 700+
      2. Equipment downpayment - This is only available for loans to purchase equipment. The proof of downpayment amount and equipment list with the prices on the third-party vendor platforms (links, screenshots, direct purchase orders from vendors, etc.) must be submitted with the application. It is not available for loan for working capital or inventory purchases.
      3. Positive cashflow (for existing businesses only) - This is only available for existing businesses that have shown positive cash flow for the last six months. It must be confirmed with tax returns, financial statements, or bank statements.
      4. LTV of collateral > 50% - Personal/Business vehicles with a Kelley Book Value of more than 50% of the Loan amount requested will be eligible. CEO will be the lienholder on the title until the loan is paid in full. This discount is not eligible for loans to purchase vehicles/trucks.
      5. More information on the business loan interest rate discounts can be found in the Business (Microenterprise) Loans.

Please note that all interest rate discounts are applied to loans during review at time of loan application. We are happy to provide any borrower with the specific details of their loan interest rate upon request.