If a Borrower fails to make a scheduled repayment, the loan is considered overdue — and additional interest may apply.
Late Payment Handling:
- A 3-day grace period is applied after the scheduled due date
- If the payment remains unpaid after this period, late interest begins to accrue on the overdue amount
Late Interest Rate:
- Typically 2% higher than the loan’s original interest rate
- The exact late interest rate is shown on the Loan Details Page and in the Key Investment Information Sheet (KIIS)
Key Considerations:
- Late interest provides partial compensation for the delay
- It does not guarantee recovery of the overdue principal or interest
- Repayment may be delayed further or become uncollectible depending on the borrower’s financial situation
For more details, please reach out to support@afranga.com.