Repayment and Penalties

Repayments, Grace Periods, and Penalty Interest

Borrower Repayments:

• Borrowers are obligated to make repayments according to the predetermined schedule set for the Credit Vault by the borrower.

• However, this obligation only applies if there are withdrawal requests submitted within the minimum notice period.

• If no lender requests a withdrawal during the repayment cycle, the borrower does not need to make a payment at that time.

Penalty Interest:

• In case of a borrower missed repayment (failing to repay on the designated Repayment Date), a grace period of 5 days is granted.

• During this grace period, a significant penalty interest of 20% will accrue on the total borrowed amount.

• This penalty serves as a deterrent for late repayments and compensates the lenders for the increase in the overall risk profile for all lenders in the pool.

• The good news for lenders is that the accrued penalty interest is distributed proportionally alongside the regular interest earned.