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Post by stevomatt on May 27, 2019 21:03:28 GMT
Just started manual lending section..... where it says accurred interest this seems to be changing daily ..... is that correct or do they pay you monthly like the other access accounts
Also what happens if they pay up their loan early for example refinance with someone else . What happens then ? Also If it says trading suspended can you sell back or have you lost money ( on the Manual lending one ) sorry for all the questions
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star dust
Member of DD Central
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Post by star dust on May 27, 2019 22:14:32 GMT
Hi stevomatt , welcome to the forum. In the MLIA account each loan pays interest separately in accordance with the repayment schedule for that loan (available to view on the loan page tabs), usually once a month. Thus if you are diversified across a number of loans you will get a trickle of interest throughout the month, as each gets to its scheduled payment date. In the meantime the interest accrues. Keep your eye on loans that are late paying and read any notes or Q&As as this might be a sign of loan difficulties, if things get that bad there will usually be a monitoring event recorded when the loan is still tradeable and you can try to buy or sell units, or there is what is termed a 'credit event' and the loan will be suspended and untradeable. Sometimes loans are suspended for the drawdown of another tranche (more money) so the suspension will be temporary, but any other reason usually means the trading will be suspended whilst recovery takes place, and you just have to hope you'll get your capital (and maybe even some interest) at some point down the line.
When loans are repaid you should get all your capital and any interest owed to that point back into your account to re-invest elsewhere or withdraw. Loans re-financing on the platform itself are not uncommon, so if that is happening and you like the loan you could just set a target for the refinanced loan to absorb your repaid funds.
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