Repayment Schedules

Sapling Protocol is able to offer various schedules when Borrowers apply. Such as monthly, quarterly, biweekly, weekly or any custom time period for the Lenders to review and accept or deny. By adjusting instalments and instalment amounts, borrowers can be offered loans with amortised or custom payment amount schedules.

A repayment schedule can be checked and modified by the First Loss Capital Provider when accepting a loan offer. This schedule is voted on by the Lenders before the loan is issued and cannot be changed once the loan has been borrowed.

Repayment schedules are represented as instalments and will be relative to the time elapsed since the loan was first borrowed. For instance, a three month loan with three instalments borrowed on June 21 will have the next payment due on July 21 - exactly 30 days from the borrowed time.

Although the repayment schedule for a loan cannot be changed once the loan has been borrowed, it should be noted that schedules do not limit early payments or repaying a loan in full and closing the loan ahead of schedule. However, loan repayments that miss a scheduled repayment due date will continue to incur an interest rate on the overdue principal for the duration of the late period. If a loan repayment misses a scheduled repayment due date and remains outstanding past the loan repayment grace period, the loan may be subject to default by the First Loss Capital Provider.

Any payments regardless of the loan schedule type and timing - whether early, on time, or late - follow the definitions outlined in Calculating a Loan Balance and Principal and Interest Components on Payments. Although the Sapling smart contracts provide a single implementation, it can facilitate different loan schedules. See the following sections on different schedule types.