What happens if a Borrower doesn't pay?

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:

• Determine the cause of the missed payment
  
• Assess whether the issue is temporary (e.g., cash flow disruption) or long-term
  
• Explore a revised repayment plan, if applicable
  

Step 2: Recovery Efforts

If the Borrower remains in default, Afranga will:

• Take reasonable steps to negotiate full or partial repayment
  
• 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:

• Assisting with communication and documentation
  
• 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.