Repay

Repay Loan - Action Overview

The Repay Loan action allows users to pay back their active loans, retrieve their collateral, and reduce their outstanding debts. This option also provides the benefit of early repayment, which can lower the total interest paid.

How It Works

1. Select Loan to Repay:

   • The user selects the loan they wish to repay from their active debts.

2. Choose the Repay Option:

   • The user clicks the Repay option located next to the selected loan's checkbox. This action opens a popup window with detailed repayment information.

3. View Repayment Details:

   • The popup window displays:

     • The total amount due to repay the loan, including principal and interest.

     • Additional information about early repayment benefits, if applicable.

4. Early Repayment Benefits:

   • If the user chooses to repay the loan before the scheduled term:

     • Interest savings are calculated and displayed.

     • Early repayments require a minimum of 30% of the total interest, making it a cost-effective option to close loans early.

     • The interest will start to grow from the 3rd day

5. Confirmation:

   • The user confirms the repayment. Once the transaction is completed, the loan is fully settled, and the collateral is returned to the user's account.

Main Use Case

The Repay Loan action is ideal for:

• Users who want to fully close their loans and retrieve their collateral.

• Borrowers seeking to save on interest by paying off their loans early.

This feature provides flexibility and cost savings, encouraging responsible debt management.