📎Legal Structure

SPVs - Asset Originators are required to create a SPV to pledge the assets for availing the loan, the SPV holds the legal recourse in case of default. The SPV creates a legal agreement with Asset Originators. Every lending pool on Qiro marketplace has a legal entity tied to it i.e SPV or Special purpose vehicle. What is SPV ? A Special Purpose Vehicle (SPV) is an independent legal entity. It has its own assets and liabilities, as well as its own legal status. Usually, SPVs are created for a specific objective, often to isolate financial risk. As an SPV is a separate legal entity, it carries even if its parent company goes bankrupt.