We strive to make managing your loans on Maple as simple as possible. As a Borrower there are three essential actions:
- 1.Creating a Loan
- 2.Making a Payment
- 3.Proposing a Refinance
Creating a Loan
The first step in the loan process occurs off-chain. Borrowers negotiate directly with Delegates on Maple and sign legal term sheets corresponding to loan terms. After the terms are signed, the borrower creates a loan request on-chain, which is then funded by the Delegate. The process of bringing the legal agreement on-chain is as simple as inputting key terms from your term sheet into the create loan form on the borrower page.
Making a Payment
Borrowers can make payments anytime throughout the lifetime of the loan before the due date indicated in the borrower dashboard. Managing payments can be done using the upcoming repayments tab in the borrower interface.
Because the accounting is handled by Maple’s smart contracts, there is no need to manually enter in the payment amount. Before making a payment, the UI will give the borrower a breakdown of the payment in terms of principle, interest and fees, with an instruction to pay the total.
Proposing a Refinance
Borrowers may propose to refinance a loan. Normally this would occur after negotiating these terms with a Delegate and signing an amendment to the loan terms. Refinancing allows the borrower to update loan terms such as:
- Interest Rate
- Term Length
- Delegate Origination and Admin Fees
The UI will ask you to acknowledge the proposed changes to the loan term before they are submitted on chain for the Delegate approval or rejection. Proposed terms are only valid for 48 hours after which they may no longer be approved or rejected by the Delegate.