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:

"Fresh Start" Discount - In accordance with the CEO's initiative to assist newcomers, this (-1%) discount is available to applicants who have entered the United States under a humanitarian status as defined by ORR and have resided in the United States for less than two years at the time of their loan application. Documentation verifying the date of entry into the United States and the applicant's status is required to qualify for this discount. This discount is exclusively applicable to the following loan products:

• Personal Loans
• Auto Loans (Purchase only)
• Education and Training Loans
• Immigration Loans 

Good Credit discount - As a way to incentivize our borrowers to pay attention to their credit score, 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

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.

For auto purchases from a dealer - we use downpayment as the metric to determine discounts as follows:

• If downpayment > 10% = (-1%) discount
• If downpayment > 20% = (-2%) discount

For auto refinance or private-party purchases - we use loan-to-value (LTV) as the metric to determine discounts as follows:

• If LTV < 90% = (-1%) discount
• If LTV < 80% = (-2%) discount

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

Business Loan discounts - For business loans we have the following options that may lead to interest rate discounts. 

• FICO score 700+
• Equipment downpayment - This option is only for equipment purchase loans. You must submit proof of the downpayment and a list of equipment with prices from vendors (links, screenshots, purchase orders) with your application. It is not available for working capital or inventory loans.
• 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.
• 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.
• 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.