The 11 loan status variants explained

Each loan on Bitbond has a loan status. Statuses are not always as easy to understand at first sight. Therefore we explain every possible loan status in more detail in this blog post. We also explain what happens in each of the different statuses.

Explanation of each loan status

in funding

A loan which is ‘in funding’ is currently waiting to get funded by one or more investors.


When a loan was either fully funded or reached the 60% funding threshold at the end of an auction its status is ‘funded’. This status signals, that no payment from this loan has been due, yet. After the first due date of a loan payment the loan either goes to ‘current’ or to one of the 'late' statuses. 

in grace period

This status indicates that a loan has become due (regardless if it's the first payment or a consecutive payment on the loan). This period lasts 3 days from the time the payment becomes due. If the borrower completes the payment during that time the payment is marked as "Paid on time" and no late interest is charged on the loan.


A loan can have the status ‘current’ when one or more payments have been completed and no payments are past due. It also means that this loan still has one or more scheduled future payments. 

fully paid

A ‘fully paid’ loan has been repaid in full including all principal and interest payments.

late 30

When one or more payments of a loan are overdue for more than three days, but for less than 31 days, the status is ‘late 30′. This is the first of the two  late ranges. This also means that we have started to get in touch with the borrower via multiple communication channels to remind them about their payment obligations.

late 90

When one or more payments of a loan are overdue for 31 days or more, but less than 90 days, the status is ‘late 90′. When a loan is in this status the dunning procedures are ongoing and we regularly get in touch with the borrower by email and over the phone.


When a loan has one or more payments that are overdue for over 90 days the loan is considered as ‘defaulted’. After a loan has reached this status we decide individually what happens next.

If the borrower communicates with us we can still agree on an alternative repayment plan. If the borrower does not reply or is not willing / able to repay we have the right to terminate the loan before the 90 day mark and send the full outstanding loan amount to a debt collection agency.

The debt collector in most cases will either try to agree on a certain repayment with the borrower directly or bring the case to court. The net recovery proceeds from passing the claim to a debt collector are distributed among the lenders of the loan.

charged off

After a loan has been defaulted we take action as described above. Once our actions and those of the debt collection agencies that we work with are completed, the loan is ‘charged off’. From this status everybody knows that no further action is taken on this loan and all dunning, collection and legal measures that are possible have been completed.


During the auction of a loan that has been listed on our marketplace, a listing can get ‘canceled’. This typically happens when borrowers are not happy with their listing or changed their mind about getting a loan. Bitbond as a platform also reserves the right to cancel loans. However, this happens only very rarely. We cancel loans only if the loan description contains content that is against our Terms of Use or we observe fraudulent behavior by the borrower.


Loans that were listed on our marketplace and that have not reached the 60% funding threshold by the end of the auction are ‘expired’.

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