Payment of instalments – Bondster

Can the provider buy the loan back?

MartinDGV — Sun, 22 Sep 2024 13:19:31 +0000

Yes, they can. Providers can buy back the loan they have offered to investors at any time, even without their consent. Investors will then receive the amount of the principal and interest due to them on the day the loan was bought back.

Can the borrower repay the loan early? What impact will this have on my investment?

MartinDGV — Sun, 22 Sep 2024 13:18:47 +0000

Yes, they can. Your investment will be repaid in full and you will receive the outstanding principal and interest payments that are due to you on the date of early repayment.

How is the entitlement to payment of part of the principal from the held investment calculated?

MartinDGV — Sun, 22 Sep 2024 13:18:18 +0000

With each instalment paid by the borrower, the investor is entitled to a repayment of a portion of the principal according to the current principal interest held in the loan. The right to payment of principal shall always arise in full for the entire period between repayments in line with the repayment schedule. For the payment of the principal part, the holding period of the investment is not taken into account as in the case of the interest part.

Why was I credited with only the principal and no interest after the installment had been made?

MartinDGV — Sun, 22 Sep 2024 13:17:15 +0000

In rare cases, an investor may make an investment in a loan after the repayment deadline, but the previous month’s repayment has not yet been credited to the BONDSTER portal. In this respect, the investor is not entitled to interest on the repayment made by the borrower before the investment deadline. In terms of crediting the installment after the investment has been made and reducing the total principal amount due, there is a partial withdrawal from the assignment agreement and the investor is refunded part of their investment according to the amount of the principal share held. For example: the repayment date is on the 20th of each month. The investor made their investment on 22 June 2023 and the repayment information was posted on 24 June 2023. The investor is entitled to interest from the date of the investment (22 June 2023) and on.

How is the right to payment of interest from a held investment calculated?

MartinDGV — Sun, 22 Sep 2024 13:16:23 +0000

The amount of interest due on an investment is calculated based on the length of time and amount of the investment held. The interest entitlement always accrues until the due date of the repayment schedule. For example: an investor invested in a loan on 10 June 2023, the repayment date is the 20th of each month. For June, the investor is entitled to interest for 10 days of holding the investment, from the following month, the investor is already entitled to the full amount of interest according to the principal amount held, as the investment was held for the entire repayment period.

How often is repayment information provided by loan providers?

MartinDGV — Sun, 22 Sep 2024 13:15:47 +0000

Each provider is obliged to provide us with information on the installments received for the previous week on the third working day of the week. As a result, there might be a longer delay in information regarding a payment received. If the deadline for payment of the regular installment falls on Monday, for example, and the installment has been duly paid by the borrower, we will learn about the payment of such an installment only the following week in the process of regular information sharing on payments received in the previous week.

Am I entitled to late payment interest?

MartinDGV — Sun, 22 Sep 2024 13:15:12 +0000

If a repayment is overdue, investors are entitled to interest income for the period of default if the loan features the buyback guarantee. If it does not come with the guarantee, investors are entitled to penalty fees, the amount of which is set out in the parameters of the loan in question.

What happens when the borrower gets in arrears?

MartinDGV — Sun, 22 Sep 2024 13:14:32 +0000

Under the My Investments tab in your profile, you can see a detailed statement of the repayment calendar, where you can learn the history of loan repayments, including the information on when exactly which installment was paid, and when the next installments are due. The provider, as the loan administrator, is in contact with the original borrower and takes all steps to ensure that the repayment is made. If this does not happen, either a buyback follows (note: if the provider offers it) or the acceleration clause is initiated, leading to the debt recovery process, about which investors would be informed in detail.

What are the loan repayment methods?

MartinDGV — Sun, 22 Sep 2024 13:13:59 +0000

1) Annuity repayment has a fixed monthly payment. As repayment progresses, the absolute amount of the principal repayment gradually increases and the absolute amount of interest paid decreases. 2) Linear repayment takes place by repaying the same principal amount (i.e. the same share) throughout the investment period. The value of the absolute amount of interest paid is continuously decreasing. 3) One-time repayment. During the term of the loan, only interest is paid and the principal is repaid in one lump sum at the end of the loan term. The value of the absolute amount of interest paid is the same throughout the duration of the loan.