What are the prepayment risks?

Loan prepayments will negate or limit the ability to receive additional interest payments on the Credit Asset. Loan prepayments occur when a borrower decides to pay some or all of the principal on a loan earlier than originally scheduled. A borrower may decide to prepay some or all of the remaining principal at any time without penalty. In the event the principal balance of a loan, on which the payment claim is dependent, is prepaid, Bondora will receive its share of said prepayment, but additional interest will not accrue after the date on which the payment is made. 

If a borrower prepays a portion of the outstanding principal balance of a loan on which the payment claim is dependent, Bondora will reduce the outstanding principal balance and interest will cease to accrue on the portion that has been prepaid.

According to law, borrowers must be able to repay loans early without penalty. In the case of prepayment, customers are still required to pay any interest due for the period prior to prepayment.