Defaulting happens in two scenarios: no repayment by the borrower or partial repayment followed by no additional repayment.
In case of no repayment by the borrower after a loan package has become active, a settlement action will be created and the lender will have the option to call the loan and receive the assets in his custody.
The borrower cannot miss more than 50% of his total installments with a maximum of 3 missed installments, depending on which option is lower or equal to 50% from the total number of installments.
In case of partial repayment followed by no additional repayment the same rules apply for the borrower with an additional rule where the partial repayment will be equally split between Stater and the lender.
The defaulting scenarios depend on the actual loan duration that will provide the actual number of installments.
Loans with ≤ 3 installments - defaulting will apply after lack of repayment of the first installment.
Loans with ≤ 5 and > 3 installments - defaulting will apply after 2 missed installments.
Loans with ≥ 6 installments - defaulting will apply after 3 missed installments.