Let’s understand this :
You lend ₹1,00,000 for 12 months at an interest rate of 32% p.a.
We’ve considered an NPA of 3.6%, based on the platform’s average. This can vary depending on borrower performance.
Here’s the breakdown:
Interest earned: ₹26,000
Estimated (NPA @ 3.6%):- ₹3,600
Platform fees: ₹6,000 (6% for a 12-month tenure; fees vary based on tenure)
After adjustments:
Net earnings: ₹22,400
Total received: ₹1,22,400
Net return: ~22.4% p.a.
Note: This is an illustrative example. Actual returns may vary based on borrower repayments and portfolio performance.
For a more precise estimate, you can use the Platform’s calculator