Skip to main content

​
Loan Repayment

Repaying loans on time is crucial for building your Trust Score and maintaining access to the platform.

​
Repayment Overview

When you repay a loan, the following happens: 
┌─────────────────────────────────────────────────────────────────┐
│                     REPAYMENT BREAKDOWN                         │
├─────────────────────────────────────────────────────────────────┤
│  Principal ($50)  →  Returns to Trust Vault                     │
│  Interest ($1.50) →  Distributed to Stakers (tmUSDC holders)   │
│  Your Score       →  +2 points for on-time repayment           │
└─────────────────────────────────────────────────────────────────┘

​
How to Repay

​
Option 1: Manual Repayment

Repay anytime before the due date: 
// Full repayment
await usmewe.loans.repay("loan_xyz789");

// Response
{
  "success": true,
  "loanId": "loan_xyz789",
  "amountPaid": 51.50,
  "principal": 50,
  "interest": 1.50,
  "trustScoreChange": +2,
  "txHash": "0x..."
}

​
Option 2: Auto-Repayment

Enable automatic repayment from your wallet: 
await usmewe.loans.enableAutoRepay({
  loanId: "loan_xyz789",
  daysBeforeDue: 1 // Repay 1 day before due date
});
Auto-repayment ensures you never miss a payment. Enable it for peace of mind!

​
Option 3: Partial Repayment

Pay down your loan in installments: 
await usmewe.loans.repayPartial({
  loanId: "loan_xyz789",
  amount: 25 // Pay $25 of $51.50 total
});

// Remaining balance: $26.50

​
Repayment Timeline

PhaseDurationImpact
On-TimeBefore due date+2 Trust Score points
Grace Period1-7 days late-5% Trust Score penalty
Overdue8-30 days late-15% Trust Score + late fees
Default30+ days late-30% Trust Score + Insurance claim

​
Early Repayment

There are no penalties for early repayment! Pay off your loan anytime.
Benefits of early repayment:
  • Save on interest (prorated)
  • Free up borrowing capacity
  • Demonstrate reliability
// Early repayment with interest savings
const savings = await usmewe.loans.calculateEarlyPayoff("loan_xyz789");

// Response
{
  "originalTotal": 51.50,
  "earlyPayoffAmount": 50.75,
  "interestSaved": 0.75,
  "daysEarly": 7
}

​
Late Payment Consequences

​
Grace Period (Days 1-7)

If you miss the due date, you enter a 7-day grace period:
  • No late fees during grace period
  • Trust Score impact: -5% of current score
  • Notifications: Daily reminders sent

​
Overdue (Days 8-30)

After the grace period:
  • Late fee: 1% per week
  • Trust Score impact: Additional -10%
  • Borrowing: Disabled until repayment
  • Warnings: Sent to your Guardians

​
Default (Day 31+)

If you fail to repay within 30 days: 
┌─────────────────────────────────────────────────────────────────┐
│                      DEFAULT PROCESS                            │
├─────────────────────────────────────────────────────────────────┤
│  1. Loan marked as defaulted                                    │
│  2. Insurance Pool covers 80% of principal                      │
│  3. Stakers absorb 20% loss                                     │
│  4. Borrower Trust Score: -30%                                  │
│  5. Borrower banned from new loans for 90 days                  │
└─────────────────────────────────────────────────────────────────┘
Defaulting severely impacts your Trust Score and platform access. Always communicate if you’re having trouble repaying.

​
Hardship Options

If you’re struggling to repay, contact us before defaulting:
Request a 7-14 day extension with valid reason. One extension per loan allowed.
await usmewe.loans.requestExtension({
  loanId: "loan_xyz789",
  days: 7,
  reason: "Medical emergency"
});
Split remaining balance into smaller payments over extended period.Available for loans over $100 with Trust Score 50+.
Your Guardians can optionally help cover your loan. This is voluntary and improves their Trust Score too.

​
Repayment Notifications

Stay informed about your repayment status:
EventNotification
7 days before due”Reminder: Loan due in 7 days”
1 day before due”Reminder: Loan due tomorrow”
Due date”Loan due today”
Grace period”Loan overdue - grace period active”
Overdue”Urgent: Loan overdue, late fees applying”

​
Trust Score Impact

Repayment TypeTrust Score Impact
Early (7+ days)+3 points
On-time+2 points
Grace period-5% of score
Overdue-15% of score
Default-30% of score

​
API Reference

# Get loan repayment details
curl -X GET "https://api.usmewe.com/v1/loans/{loanId}/repayment" \
  -H "Authorization: Bearer YOUR_TOKEN"

# Response
{
  "loanId": "loan_xyz789",
  "principal": 50,
  "interest": 1.50,
  "totalDue": 51.50,
  "amountPaid": 0,
  "remainingBalance": 51.50,
  "dueDate": "2024-01-29T12:00:00Z",
  "status": "active",
  "daysRemaining": 14
}

​
Next Steps

Trust Score

How repayments affect your score

Insurance Pool

How defaults are covered