Your Lending Amount: ₹5,00,000.
Total Expected Interest from the Borrower: ₹1,82,500.
Platform Fee: ₹30,000 (This is 6% of your ₹5,00,000 for a 12-month loan).
Your Final Profit: ₹1,82,500 (Expected Interest) minus ₹30,000 (Fee) = ₹1,52,500.
The Calculation: 1,52,500 / 5,00,000 × 100 = 30.5% Absolute Return
Please note: this is just an illustrative example; your actual returns will depend on the borrower’s repayment behaviour.
For a more precise estimate, you can use the Platform’s calculator