Calculation of the weighted average annual interest rate

1. For the calculation of the weighted average annual interest rate on loans in a portfolio as referred to in Article 6(4), point (b), of Regulation (EU) 2020/1503, crowdfunding service providers shall calculate the average, weighted for the outstanding amount of loans in a portfolio, of the annual interest rate of every loan of which the portfolio is composed.

2. In order to calculate the weighted average annual interest rate referred to in paragraph 1, crowdfunding service providers shall ensure all of the following:

(a) that the denominator consists of the sum of the notional amount of every loan included in the portfolio;

(b) that the numerator consists of the sum of the products of:

(i) the notional amount of every loan;

(ii) the annual interest rate of every loan included in the portfolio.

3. For the purposes of paragraph 2, point (b)(ii), the annual interest rate shall correspond to any of the following:

(a) in the case of a fixed interest rate, the annual interest rate as laid down in the loan contract;

(b) in the case of a variable interest rate, the interest rate in force at the time of the publication of the weighted average annual interest rate, taking into account any upper limit as laid down in the loan contract;

(c) in cases in which the loan is split into tranches earning different interest rates, the weighted average of the interest rates as laid down in the loan contract.

Article 9

Distribution of loans according to risk category

1. For the calculation of the distribution of loans according to risk category, in absolute numbers and as a percentage, as referred to in Article 6(4), point (c), of Regulation (EU) 2020/1503, crowdfunding service providers shall ensure that each individual loan is assigned to the relevant risk category set out in the risk management framework on the basis of sound and well-defined criteria, as referred to in Article 4(4), point (f), of Regulation (EU) 2020/1503, and as specified in accordance with Article 19(7), point (d) of that Regulation.

2. For the purposes of paragraph 1, and for each risk category, the following definitions shall apply:

(a) the distribution of loans according to risk category in absolute numbers shall refer to the sum of the notional amount of every loan in the same risk category;

(b) the distribution of loans according to risk category as a percentage shall refer to the ratio between:

(i) the sum of the notional amount of every loan in the same risk category;

(ii) the total notional amount of all loans within the portfolio.

3. For the disclosure of information to investors, crowdfunding service providers shall establish and maintain clear and effective policies and procedures for the specification of the risk categories.

Article 10

Key information for every loan included in the portfolio

1. The key information for every loan of which a portfolio is composed referred to in Article 6(4), point (d) of Regulation (EU) 2020/1503 shall contain all of the following:

(a) the amount of the loan, including the most recent outstanding balance;

(b) the currency in which the loan is granted;