We offer the following loan terms and repayment types:
Every borrower can have a maximum of 1 ongoing loan. This includes loans that are currently listed ("in funding") and loans that have been funded and are not repaid, yet.
The auction lasts a maximum of 14 days and ends earlier when the requested amount is reached. During the auction period lenders are bound to their bids.
A loan is funded and paid out to the borrower either if the requested amount is reached during the auction period or if the funded amount reaches 60% or more of the requested amount at the end of the auction.
Loans with a term of 6 weeks can not be repaid early. Loans with a term of 6 months or more can be repaid early, but not before the first payment of the loan is due.
Interest rates are set according to a borrower's creditworthiness which is determined by the rating (risk based pricing). Interest rates vary according to the rating and the term of the loan. All payments of interest and principal are paid to lenders according to their number of notes held.
All interest rates are stated on a per annum (p.a.) basis to make loans of different terms comparable. The stated rates are nominal rates which means that the effective APR for a lender can vary slightly depending on the concrete payment schedule. You can view all payment schedules of your holdings under 'Investments' in your account. The interest rate payment is always calculated based on oustanding principal at the payment due date.
The origination fee gets deducted from the loan amount prior to disbursement.
If a borrower delays payments on a loan, the borrower has to pay late payment interest at five percentage points above the base rate on the overdue payment on a per annum basis.
In case a loan is late, Bitbond has the right to charge an arrears fee in bitcoin which equals EUR 1.00 for reminders sent via mail. This fee does not apply on the first reminder sent. The borrower may show evidence that despite the late payment the reminder costs have not been incurred or that the cost is substantially lower than this flat charge. We reserve to assert further claims from late payments.
For every repayment of the borrower (sum of principal and interest) Bitbond keeps a certain percentage as a repayment fee for loan servicing. This repayment fee is 1.0% for all loan terms and can be set to a higher or lower level with specific lenders.
All fees are VAT exempt according to §4 no. 8a UStG (German VAT act)
Date: May 2017