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# Loan Repayment

Borrowers repay their loans with interest over the agreed term. The repayment is distributed to investors according to their contributions. In case of borrower default, the insurance pool compensates the investors, ensuring their capital is protected.

**Example:** The logistics company successfully secures its $50,000 loan and begins its operations. Over the next 12 months, the company makes regular interest payments, which are distributed to the investors. At the end of the loan term, the principal amount is repaid. If the company had defaulted, the insurance pool would have activated, and the investors would have been compensated from the pool, up to the insured amount.


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