When will I receive my accrued interest?

Accrued interest is interest the loan has earned since the Borrower’s last payment but has not yet paid out. When you sell on the Secondary Market, that interest stays with you.

When you receive it

You receive it when the Borrower makes their next scheduled payment – not at the moment of the sale, and not as part of the sale price. It is credited to your Afranga wallet along with any other payments due to you.

This is why the timing differs from the sale proceeds: the sale price reaches you when the sale completes, while the accrued interest follows the Borrower’s repayment schedule.

How it is split with the buyer

Interest is apportioned by day. Interest for the period up to and including the sale date is yours. Interest from after the sale date belongs to the buyer. The buyer acquires the outstanding principal only.

Both parts are paid out of the same payment when it arrives from the Borrower.

If the Borrower pays late

Afranga distributes interest once the funds have been received from the Borrower, and only to the extent received. If a payment is late, your accrued interest is paid when that payment arrives. Your entitlement to it is not affected by the sale.

As with all investments, your capital is at risk and repayment is not guaranteed. Questions? support@afranga.com.