Lendy will classify a loan as non-performing when:
- the redemption figure is not paid in full within a Tolerance Period from the loan repayment date
- the borrower is unable to provide Lendy with sufficient clarity (defined below) as to how the loan will be repaid within the tolerance period
- upon the first working day, it remains outstanding outside of the tolerance period
At our absolute discretion we will classify a loan as non-performing at any time throughout the Tolerance Period.
How will interest be paid?
- For the Tolerance Period investors will continue to accrue interest but interest will not be credited until, for example, the sale of the security completes. The final interest credit is dependent upon the amount of repayment that we are ultimately able to secure.
When may you extend a loan?
- At our discretion, a loan may be extended before or by the original repayment date.
- When a loan is extended, the repayment date is renegotiated to extend the original loan term, with the Tolerance Period reset to start the day following the new repayment date.
- A loan may only be extended whilst in the Tolerance Period from the borrower’s cash if the borrower is able to pay to Lendy sufficient funds to cover:
- All interest owed.
- Sufficient interest at the standard rate to extend the loan term so that the date of the extension will be prior to the new repayment date.
- A loan may only be extended whilst in the Tolerance Period from refinance on the platform if platform users are able to raise funds sufficient to cover:
- All interest owed.
- Sufficient interest at the standard rate to extend the loan term so that the date of the extension will be ninety days prior to the new repayment date.