Education Center

Loan Repayment Methods

On KoinWorks, there are three loan repayment methods for Lenders i.e.

  1. Monthly Repayment
  2. Lump Sum (at the end of loan tenor)
  3. Loans with Grace Period

Monthly Repayment

Through products of this return method, Lenders will receive returns in the form of loan principal including interest each month during the tenor.

If a product has a 12-month tenor, for example, Lenders will get a monthly return 12 times during the tenor.

The simulation is as follows:

Img monthly simulation

Please keep in mind that the amount and date of the monthly returns are the same except if there is a Loan Restructuring. However, the return composition used in this method is decaying interest in accordance with the proportions.

Img decaying simulation

Through this method, KoinWorks will charge 1% service fee out of each return (principal, interest, and late fee) received by Lender every month.

Lump Sum Repayment

With this method, Lenders will get return in the form of principle and interest all at once at the end of tenor in one payment.

For example, if a loan has 3-month tenor, Lenders will get the return in the 3rd month (end of tenor).

On this return method, KoinWorks will charge 5% service fee only from the interest gained by the Lenders.

The simulation is as follows:

Img lumpsum simulation

Each lump sum loan product will be given a Lump sum label under the Payment Method section inside the product details.

Loans with Grace Period

Through this type of loan, Lenders will only get a return in the form of interest every month during the Grace Period. After the Grace Period ends, Lenders will get monthly return in the form of accumulated principal during the Grace Period and interest.

For example, a product that has a 12-month tenor with 6 months Grace Period (labelled with G6 + 6 on the Browse Loan page), then in the first six months, Lenders will only get returns in the form of interest. After the Grace Period ends (7th to 12th months), Lenders will get the principal (accumulated from the first six months) in the 7th to 12th months with interest.

Through this method, KoinWorks will charge 1% service fee out of each return (principal, interest, and late fee) received by Lender every month. During the Grace Period, the 1% service fee will be only charged from the interest every month.

The simulation is as follows:

Img grace period simulation

KoinWorks Service Fees

Note Monthly Lump Sum Grace Period
Tenor 6 - 24 months 1 - 6 months 6 - 24 months
KoinWorks Service Fee 1% of total return* 5% of interest 1% of total return*

(*) Total Return = Principal + Interest + Late Fee (if any)