Pursuing RBI relief measures due to the COVID-19 outbreak, LenDenClub has offered moratorium to those borrowers who are affected because of loss of job/pay cut in salary / delayed salary for the month of March, April & May. This may not be restricted to the salary of the borrower only, but to other family members also.
How would it work for investors?
Borrowers get an option for a moratorium for March, April and May 2020 as announced by the RBI. If your borrower opts for a moratorium for a particular month, he/she pays interest for that month and his/her all future EMIs will shift by one month. If the borrower opts for a moratorium of multiple months, the EMI of that borrower will shift by that many months. The borrower will pay moratorium interest for the applicable month, which gets reflected in your account/income statement. The borrowers who opt for a moratorium will be highlighted in your portfolio. The relevant app/web update will go live soon. We will notify you once it is done.
If you made an investment of Rs 500 in a loan at 48% RoI for one month, then you receive Rs 520 (Rs 500 as principal and Rs 20 as interest) when the borrowers make a repayment. Consider the due date was 5 April 2020 and the borrower opts for a one-month moratorium, then the EMI due date will shift to 5 May 2020. As a result, you will receive a moratorium interest of Rs 20 for the month of April in addition to the interest for the month of May.
The new app update will help you track the borrowers who have opted for a moratorium. You will be able to view who has opted for a moratorium and their new repayment dates.