What is Loan Restructuring?
Loan Restructuring is a step taken by KoinWorks and Borrower to prevent the occurrence of loan default by extending the tenor of the loan. This is done in order to ease the Borrower’s monthly repayment burden by extending the loan period while reducing the monthly installment amount. With this step, KoinWorks and Borrowers can reduce the risk of losses to the Lenders’ funding funds so that the funds allocated can be retained completely, only with longer duration.
The main impacts for Lenders?
- The funding funds will take longer to return fully
- The overall return on funding will be greater (compounding effect)
- Preventing the loss of funding fund due to loan default