Please note that some delays in interest payments may occur due to the specifics of the real estate industry. We may expect delays when the funded property is in the sale process; the borrower is waiting for payments from related parties, the loan is being refinanced, etc. Usually, payment delays of up to one week are considered normal.

If the interest payments under the loan payment schedule are overdue, for every day of the delay, an additional 5% yearly interest would be applied for each investment (the accumulated overdue interest amount would be processed with the last payment). In case of the project owner’s insolvency, interest will no longer accumulate starting from the day the court determines the insolvency (as per criteria established in Section 28, Clause 1, Point 4 of the Law on insolvency of legal entities of the Republic of Lithuania).

Regarding longer delays, investors are notified via a separate message in their Crowdpear account’s news section. If you haven’t received any updates after a reasonable period, feel free to contact Client Support for assistance.

A loan would be considered late if the borrower would not repay the loan after the end of the loan agreement schedule. If the borrower could not return the loan within the timeframe indicated in the agreement, Crowdpear would terminate the contract with the project owner and would initiate a legal recovery process following the normative acts valid in the Republic of Lithuania and in the EU (such project would be displayed as ‘In recovery’ status).

For more information, please refer to the Procedure for management of defaults and Loan agreement. General conditions documents, available here.