What happens if a borrower dies?
If a borrower dies with a loan outstanding, Bondora generally seeks to work with the executor of the borrower’s estate to secure repayment of the loan. However, the estate may not contain sufficient assets to repay the obligation. Moreover, if a borrower dies near the end of the term of an unsecured loan, it is unlikely that further payments will be made on the Credit Asset, as the time required for probate of the estate may extend beyond the initial and final maturity dates of the Credit Asset.
Because the share of elderly borrowers in Bondora’s customer base is proportionately small and the risk of the death of the borrower has been low historically, it believes this risk is relatively low.