What happens when a loan defaults?
When a Loan defaults it means that it fails to pay back the entire or part of the Loan amount. A Loan is declared defaulted when the cumulated late repayments exceed the amount of six months scheduled repayments, which may run up to six months to the original expected final repayment date. The Loan is then moved to “Defaulted”, and the Investors will receive an email with information about the default. The Provider will post a blog on the Business’ blog explaining the circumstances for the default. Even after a Loan has defaulted and the investors have formally lost their money the MYC4 Staffs may still recover the collateral at a later stage in which case these funds will be distributed to the Investors via their MYC4 account.
