Repayment
This guide covers payment schedules, options, and what happens if you miss payments.
Payment Structure
Each payment consists of:
| Component | Description |
|---|---|
| Principal | Reduces loan balance |
| Interest | Cost of borrowing |
| Total Payment | Principal + Interest |
Amortization
Loans use standard amortization:
- Early payments are interest-heavy
- Later payments are principal-heavy
- Fixed monthly payment amount (unless rate adjusts)
Payment Schedule
Viewing Your Schedule
Access via Borrower > My Loans > [Loan] > Schedule
The schedule shows:
- Payment due dates
- Amount due
- Principal portion
- Interest portion
- Remaining balance
Payment Reminders
Automated notifications:
| Timing | Notification |
|---|---|
| 7 days before | Email reminder |
| 3 days before | Email + app notification |
| Due date | Final reminder |
| 1 day after | Missed payment alert |
Making Payments
Standard Payment
- Ensure USDC in wallet
- Navigate to My Loans
- Select loan
- Click Make Payment
- Review amount
- Confirm transaction
Payment Methods
| Method | Description |
|---|---|
| Wallet Balance | Pay from connected wallet |
| Direct Transfer | Send USDC to loan contract |
Extra Payments
Making Extra Payments
You can pay more than the scheduled amount:
- Navigate to My Loans > [Loan]
- Click Make Payment
- Enter amount above minimum
- Confirm transaction
Extra Payment Benefits
- Principal Reduction — Extra goes to principal
- Interest Savings — Less interest over loan life
- Shorter Term — Pay off loan faster
Example
Scheduled Payment: $500
Extra Payment: $200
Total Payment: $700
$500 → Regular payment (interest + principal)
$200 → Applied to principal only
Early Payoff
Benefits
- No Prepayment Penalty — Pay off anytime
- Interest Savings — Save on remaining interest
- Immediate Closure — Loan marked complete
Process
- Navigate to My Loans > [Loan]
- Click Pay Off Loan
- Review payoff quote (includes accrued interest)
- Confirm payment
- Loan status changes to REPAID
Payoff Quote
The quote includes:
- Remaining principal
- Accrued interest (to current date)
- Any outstanding fees
- Total payoff amount
Dynamic Rate Adjustments
Why Rates Change
Interest rates may adjust based on your DSCR:
- DSCR Improves — Rate may decrease
- DSCR Declines — Rate may increase
Weekly Monitoring
The system:
- Syncs Plaid transaction data weekly
- Recalculates DSCR from recent 90 days
- Determines if rate adjustment needed
- Notifies you of any changes
Notification
You receive alerts for:
- Rate changes
- New payment amounts
- DSCR threshold warnings
Late Payments
Grace Period
7-day grace period after due date:
- Payment still counts as "on-time"
- No late fees during grace period
- Avoid making this a habit
Late Fee Schedule
| Days Late | Fee |
|---|---|
| 1-7 days | No fee (grace period) |
| 8-30 days | 2% of payment amount |
| 31+ days | Additional 2% |
Example
Payment Due: $500
Paid 15 days late
Late Fee: $500 × 2% = $10
Total Due: $510
Default
When Default Occurs
Loans enter default status after:
- 60+ days without payment
- Repeated missed payments
- Fraud detection
Default Consequences
| Consequence | Description |
|---|---|
| Credential Revocation | Cannot borrow again |
| Collections | Debt collection process |
| On-Chain Record | Permanent default record |
Avoiding Default
If struggling with payments:
- Contact support early
- Discuss options (rate adjustment, term extension)
- Make partial payments if possible
- Keep communication open
Payment Records
Monthly Statements
Access via My Loans > Statements:
- Total interest paid
- Principal reduction
- Remaining balance
- Fees paid
Annual Summary
Tax-relevant summary:
- Total interest paid for year
- Can be used for tax documentation
Export Options
Download records in:
- CSV — For spreadsheets
- PDF — For records
- JSON — For programmatic access
Access via My Loans > History > Export
Payment FAQ
Can I change my payment date?
Payment dates are fixed based on loan origination. Contact support for special circumstances.
What if I pay late during grace period?
No penalty, but payment is recorded as late. Multiple late payments may affect future borrowing.
Can I make bi-weekly payments?
Currently, only monthly payments are supported. Extra payments can be made anytime.
What happens to overpayments?
Any amount over the scheduled payment is applied to principal.
Next Steps
- Loan Application — How to apply
- DSCR Calculation — Understanding your rate
- Eligibility — Borrower requirements