Loan repayments - FAQ
You will find all the details in the Account Statement in your profile, where you can see all your transactions. You can also use filters for better search results.
You receive the return on your investment as specified in the respective loan details. This is usually on a monthly basis, depending on how regular repayments are made. It also depends on the type of loan you have invested in. Repayments can also be made in a shorter or longer timeframe and involve gradual principal repayment. You can also invest in a one-off loan, where the principal is repaid on the maturity date of the loan and interest payments are usually paid regularly over the duration of the loan.
The annuity repayment has a fixed monthly payment. In this kind of repayment, the amount of principal repaid in each payment gradually increases while the amount of interest paid decreases. 2) Linear repayment involves repaying the same amount of principal with each payment over the entire investment period. The amount of interest paid with each payment decreases continuously. 3) One-time repayment. During the maturity of the loan, only interest payments are made. At the end of the loan maturity, the principal is repaid in a lump sum. The amount of interest paid with each repayment stays the same for the duration of the loan.
In the My Investments section of your profile, you can see a detailed overview of the repayment calendar. There, you can see the history of loan repayments, when they were made, and when are other repayments due. The provider, being the loan administrator, is in contact with the borrower and takes all necessary steps to ensure the repayment is made. If this does not happen, either a buyback will follow or the acceleration clause will be invoked and the debt recovery will proceed, about which we would keep investors well informed.
When a repayment is overdue, investors are entitled to interest payments for the period of delay if the loan includes a buyback guarantee. If the loan does not include the guarantee, you are entitled to penalty fees. Their amount is specified in the loan details.
We require each provider to share with us information regarding loan repayments for the previous week on the third day of the current week. As a result, there might be a larger delay with the information about a repayment that has been received. If the regular loan repayment date falls on Monday, for example, and the loan is being duly repaid, we will only receive information about such repayment the following week within the regular information about payments received over the previous week.
The amount of interest on the investment the investor is entitled to is calculated from the time and amount of the investment. The investor becomes entitled to the interest payment for the period until the next repayment date according to the repayment calendar. For example: The investor invested in a loan on 10 June 2017 and the repayment date is every 20th day of the month. In June, the investor is entitled to interest for 10 days of holding the investment. From the following month, the investor is entitled to the full amount of interest according to the amount of principal held, as they will have been holding the investment for the entire period between two repayments.
With each repayment made by the borrower, the investor is entitled to the payment of part of the principal according to their share of the loan. The investor is entitled to a principal payment in full for the entire period between individual repayments according to the repayment calendar, regardless of how long they have held the investment for in that respective period. This is different from interest payments which are calculated separately for each day the investor has held the investment.
In rare cases, an investor may invest in a loan after its repayment date, while the repayment for the previous month has not yet been processed by Bondster. Therefore, the investor is not entitled to interest on the loan repayment made by the borrower before the date of their initial investment. From the perspective of crediting the repayment after the investment has been made and the principal due reduced, this constitutes a partial withdrawal from the assignment agreement and the investor is therefore refunded part of their investment according to the amount of principal held. For example: a repayment is due on the 20th day of each month. An investor makes their investment on 22 June 2017 but the information about the repayment gets processed on 24 June 2017. The investor is entitled to interest starting from the date of their investment (22 June 2017) and on.
Yes, they can. Your investment would be repaid in full, and you would receive the outstanding principal and interest payments due you are entitled to on the day of early repayment.
Yes, they can. Providers can repurchase their loans offered to investors at any time, even without their consent. Investors will receive the principal and interest due they are entitled to on the day the loan is repurchased.