If a loan goes unpaid on its scheduled payment date, the SoLo recovery team actively pursues repayment through a combination of automated and manual processes.

If the loan is recovered within the first 35 days post origination (the day a member enters the loan) but after the scheduled repayment date, SoLo charges the lender a SoLo Fee of 15% of the principal.

Starting on the 35th day post origination, a late fee is payable by the borrower to the lender (in the amount of 10% of the principal, whichever is higher). Also starting on the 35th day post origination, if funds are recovered before 90 days from the scheduled payment date a recovery fee of 30% of the loan principal is assessed from the recovered amount by SoLo. This is to cover the transaction fees in retrieving funds.

If our recovery team is unable to obtain repayment within 90 days of the scheduled payment date, we transfer it to a third-party collections agency. At this stage, the borrower is banned from the platform. The third-party collections agency will take up to 30% of whatever funds are collected from the borrower.