In the event that a Borrower fails to meet their repayment obligations, Afranga has procedures in place to protect investor interests and facilitate recovery.
Step 1: Immediate Contact and Assessment
Afranga will promptly contact the Borrower to:
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Determine the cause of the missed payment
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Assess whether the issue is temporary (e.g., cash flow disruption) or long-term
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Explore a revised repayment plan, if applicable
Step 2: Recovery Efforts
If the Borrower remains in default, Afranga will:
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Take reasonable steps to negotiate full or partial repayment
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Monitor the Borrower’s financial condition and potential to resume payments
Step 3: Legal Action (If Needed)
If the Borrower refuses to repay the loan, legal action may be initiated to recover the outstanding amount. Afranga will support investors throughout this process, including:
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Assisting with communication and documentation
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Coordinating potential collective recovery efforts, where feasible
Alternatively, each investor retains the right to pursue legal action independently against the Borrower.
Note:
Loan defaults are a potential risk when investing in loans. Afranga performs extensive due diligence on all Borrowers before loan listings, and continues to monitor them post-investment to reduce such risks.
For more information on how Afranga manages credit risk contact us at support@afranga.com.