Repayment management makes it simple for users to meet their loan obligations, with options to repay using either AUD or security. This feature helps users keep their loans on track and manage their finances smoothly.
Repayment with AUD
Repaying with AUD allows users to reduce their loan balance by making repayments directly in AUD. End users can make partial or full repayments in AUD at any time (as long as there are no pending actions; see Allowed Actions for more details).
Loan Status Update
An end user can make repayments based on a repayment schedule or as a lump sum, depending on the type of loan they have. The loan status is updated once the repayment is received in the main account.
For cash repayments, the business has two options for sending funds to Block Earner:
- Send AUD to the main account along with the request: This updates the loan status near-instant.
- Queue the request and wait for the pre-reckoning report: The loan status is updated once the reckoning is completed.
Repayment with Security
Repaying with security allows users to reduce their loan balance by using their collateral (e.g., BTC, ETH) as repayment. This option is ideal for users who prefer to manage liquidity while maintaining their loan.
End users can initiate a security repayment if they have sufficient collateral available (as long as there are no pending actions; see Allowed Actions for more details).
Loan Status Update
Security repayment doesn't require approval. The loan status is updated after the security is processed, and the repayment amount is applied to the loan balance.
The loan object will include a new field, pendingRepaymentSecurityCryptoAmount, to reflect the security repayment in progress. The user will see the updated loan status after the next reckoning.