When the borrower repays the loan, the corresponding principal and accrued interest are credited to investors according to their share of the investment and the applicable Investment Agreement. Payments for a particular loan are distributed proportionally among investors based on the amount invested. If a payment remains overdue for more than 60 calendar days, the applicable Buyback Obligation requires the Loan Originator to repurchase the investment with accrued interest.
When do I receive interest and repayments?
As soon as the borrower, whose loan you have invested in, repays the loan, you will receive payment of both the principal amount and accrued interest. Received payment is divided proportionally according to the amount of investment between all investors that have invested in the particular loan. If the borrower delays more than 60 days loan originator automatically executes buyback and you receive the principal sum and interest as well. Please note, that interest is calculated for all delayed period.
The main advantage is that investors don’t have to wait years or decades to see the returns on made investment which means it is the perfect way to turn a profit quickly. After purchasing loans manually or by Auto Invest tool investors start earning profit instantly.
