Explain how and when my savings and loan share are distributed.
Whenever you take a PayUback loan, the fees collected are divided into shares. Think of these as the seven “hoppers” in the diagram below. The first hopper which holds 10% of shares is always open, so these shares drop directly into your savings and loan account. After 5 years the second hopper opens adding these shares to your savings and loan account and so on. This diagram shows how after 10 years, 40% of shares have been distributed.
Even if you never borrow again we continue to distribute shares and add earned interest. But if you claim your shares before the thirty-year maturity date the shares remaining in the hoppers are forfeited. To see how this adds up if you continued to borrow see the vesting schedule.
Why can’t I take money out of my savings and loan account whenever I want?
This account is held as collateral for your PayUBack loans and of course, the income we make from investing the money allows us to return all your service fees. You can however, request a low-interest equity loan (minimum $1,000) against any unused equity in this account.
What if I need the money in my savings and loan account before it is mature?
You can take an equity loan up to the full amount of equity remaining in your savings and loan account or you can cancel the agreement. To cancel you must notify us of your intent to terminate the agreement and claim your shares. Terminating the agreement means we will no longer make PayUBack loans nor make future share contributions to your contingency savings and savings and loan accounts.