According to their loan agreements, each borrower makes monthly payments, consisting of principal, interest and late payment fees, or any combination of the above. The principal part of the payment reduces your investment’s carrying value in the loan, while the interest and late payment fee portion of the payment is treated as your income.
Your portion of the payment, calculated based on your investment in any particular loan, will be added to your Monestro account after the payment has been processed. You can then choose to invest the funds in more loans or transfer them to your bank account.